Brent oil prices open today’s trading session at $118 a barrel and continues to take a lead from the value of the US dollar which fell on Tuesday as US lawmakers remained deadlocked over raising the nation’s debt ceiling to avoid a devastating default.
Latest Brent Oil Price
In London, Brent crude oil futures for September 2011 delivery was trading at $118.24 a barrel, 07.50 GMT this morning on the ICE Futures Exchange. The contract closed yesterday’s session little changed at $118.18 a barrel.
Meanwhile, the Brent oil futures contract was at a premium of $19.06 to US WTI oil futures, down from a record $22.63 on 14th July.
Dollar, Currency Markets and Oil Prices
While other markets this week have seemed to take the lack of a debt deal in stride, the US dollar reached its lowest level versus the Japanese currency since March. The US dollar fell near 1 percent against the euro, reaching new three week depths versus its rival. Overnight, the US dollar repeated its recent predilection and fell to a fresh all time low versus the safe haven Swiss franc at CHF 0.7997.
“Some currency influence is coming into the oil market. But gold and oil are quite different and oil investors are not panicking at the moment.” said Ken Hasegawa, a commodity derivatives sales manager at broker Newedge Group, Tokyo.
“The market is getting more nervous about the debt ceiling issue. If the market was really starting to price in the possibility of a default, the US dollar would be losing more than what we saw this morning.” said You-Na Park, currency strategist at Commerzbank, Frankfurt.