Current Oil Prices Increase with Weaker US Currency

Current oil prices strengthened as traders were largely influenced by downward momentum in the U.S. currency. However, sentiment stayed careful over concerns regarding the economies of the United States and the Eurozone, according to analysts.

In the afternoon deals on London’s ICE Futures Exchange, Brent for December delivery gained 55 cents to a crude price per barrel of $108.81.

On the NYMEX, the current oil price of the U.S. benchmark for delivery in December moved 38 cents higher to $85.76 per barrel.

A weak greenback makes crude oil, which is priced using the dollar, more affordable for buyers utilizing stronger currencies, strengthening demand and, ultimately, prices.

In earlier deals made in Asia, the crude prices per barrel had traded mixed in the midst of worries that the US “fiscal cliff” can lead the largest economy of the world into recession, possibly damaging global fuel demand demand. The threatening fiscal cliff has haunted financial markets since President Barack Obama’s re-election in the past week.

The delay in the decision by European finance ministers regarding the release of the next set of bailout funds for debt-stricken Greece also added to the uncertainty.

Obama recently gave his first press conference since the election. The conference was mostly dedicated toward discussion of the “fiscal cliff” and the continuing scandal that led to the resignation of CIA chief Mr. David Petraeus.

Traders were also pondering recent US retail sales figures and the release of the minutes from the latest Federal Reserve policy meeting.

The crude market declined a day before following the International Energy Agency’s reduction of its demand forecast for global crude, while global inventories remain very high, according to OPEC.