Brent oil trading near $112, weaker US dollar supports prices

Brent crude oil futures open today’s trading session hanging near $112 a barrel as both Brent and WTI crude oil futures firm and a weaker US dollar helps support high commodity and oil prices

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Latest Brent Oil Price

In London, Brent crude oil futures for August 2011 delivery was trading at $111.85 a barrel, 05.35 GMT this morning on the ICE Futures Exchange. The contract closed yesterday’s trading session at $111.99.

US Dollar Exchange Rate

The ICE US Dollar Index, which tracks the US dollar against six major world currencies fell 0.3 percent to 74.69 earlier this morning. A weaker US dollar tends to support oil prices as they become cheaper for buyers using other currencies.

However, having lost more 10 percent of its value in the past year, the fortunes of the US dollar may start turning around soon, according to one analyst.

“I have a very strong belief that by the end of this year, the dollar will be much stronger than it is right now.” said Kathy Lien, Director of Currency Research at Global Forex Trading.

“I don’t think come 1st July, we are going to see a vertical move higher immediately for the US dollar.” she said, referring to the Federal Reserve’s second round of quantitative easing, which ended yesterday.