Brent oil prices open this week’s trading session steady over $115 a barrel as the US dollar looked weaker today, as seen by movements on the ICE US Dollar Index.
Latest Brent Oil Price
In London, Brent crude oil futures for July 2011 delivery was trading at $115.62 a barrel, 08.00 GMT this morning on the ICE Futures Exchange. Trading s thin as markets in China, Hong Kong and South Korea were shut on a public holiday, traders said.
Meanwhile, the ICE US Dollar Index, which tracks the US dollar against six major world currencies was down to 73.72.
US Interest Rates & QE3
The latest economic data out of the US is backing a case for the US Federal Reserve to keep interest rates near zero, further weakening the dollar, which in turn pushes dollar traded commodities, including oil futures higher.
“The weak US data has increased the possibility of a third round of quantitative easing.” said Ong Yi Ling, an analyst at Phillip Futures.
The weakness in the US dollar is likely to support prices of commodities, as a soft US dollar makes commodities including oil and gold cheaper for holders of other currencies.