WTI oil futures open Tuesday’s trading session back under $82 a barrel as a stronger US dollar and lower stock markets in Asia cap oil’s recent gains.
US Light crude oil futures for November 2010 delivery was trading at $81.40 a barrel, 07.45 GMT this morning on the NYMEX. The contract lost 45 cents to settle at $82.21 on Monday.
The ICE Dollar Index was up 0.10 percent at 77.520, however still close to its lowest in nearly nine months.
“The upsurge from $74 to $83 was on the back of an upsurge in the stock markets, but with equities staying flat, oil has lost its fizzle. The price of oil could easily fall back below $80 a barrel.” said Mike Sander, investment adviser at Sander Capital Advisors.
Oil prices continue on the downside for a second day running as a short term rebound in the dollar works against US dollar denominated commodities including oil, however gold and silver prices continue to show strength.