Oil Prices to the Lowest Level

Oil prices fell nearly 2% over the weekend and posted its first weekly decline in four weeks as the dollar rebound (bounce back), triggered profit-taking before the holiday weekend.

To contract for November delivery, the most active contract, on the New York Mercantile Exchange, crude oil prices fell U.S. $ 1.44 or 1.74% to as low as U.S. $ 81.25 per barrel, after trading from the level of U.S. $ 80.75-US $ 83.33 per barrel with trading volume of 661,000 lots.

This crude oil price correction after the dollar rebounded ari eight-month lowest level against the euro at the weekend trade, which is perched at the level of U.S. $ 1.3971 per euro after a touching U.S. $ 1.4161. Index of U.S. dollar against world currencies traded at 77.13 level, rebounds from the pressure that reached its lowest level this year at the 76.14 level.

Valbury Asia analyst mentions Rekhmen Futures traders projecting that the U.S. central bank, the Federal Reserve, will hold a meeting at 2 to 3 November 2010, but the pressure of anticipation of dollars from the issue of monetary stimulus program (quantitave easing / QE), make market participants consider that the pressure dollar has sharply in a short span of time or oversold (oversold).

In addition, the emergence of new issues of Foreclosure crisis (foreclosure) also disrupt trade patterns that evolved from the QE issue, as a result the dollar rebounds on weekends.

`But the issue needs to be aware of this growing foreclosure crisis and the pressing financial or banking stocks globally thereby potentially triggering action to buy dollars,` he said.

She adds commodity prices, especially crude oil and gold directly affected by U.S. dollar movement. Crude oil prices have trimmed down 1.7% since 8 October, its first weekly decline in four weeks but has gone up 4.7% in this year.

By: Valbury Asia Futures Rekhmen
Source: bisnis.com