Light oil price trading back over $79 after fall

US Light oil price is trading back above $79 a barrel on Wednesday after falling earlier in the day as European equities slid and the US dollar strengthened, traders said.

New York’s main contract, light sweet crude oil futures for delivery in December, rose to 79.21 dollars a barrel.

“The moves higher are still very aggressive but they are now running into general drifting lower during periods,” said Capital Spreads analyst Simon Denham.

Traders cited a strengthening dollar, which makes dollar priced crude more expensive for buyers holding foreign currencies, for dampening oil demand. Meanwhile global equity markets slid today as sentiment wobbled amid doubts about the prospects of a global recovery from recession and ahead of a US Federal Reserve interest rate decision.

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