Forexpros – Crude oil futures eased higher on the death of Korean strong man, Kim Jong and news that his son Kim Jong took power in the nuclear armed nation.
On the New York Mercantile Exchange, light sweet crude futures for January settlement traded at USD93.86 a barrel during late U.S. trade advancing 0.11%.
It earlier hit a daily high of USD94.63 a barrel.
Weakness in the U.S. dollar added to the bullish crude price environment.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, gained 0.29%% to trade at 80.92.
Dollar strength generally depresses commodity prices, as it lowers their appeal as an alternative asset and makes dollar priced commodities more expensive for holders of other currencies.
The official Korean news agency announced the death of leader Kim Jong and that his son took power on December, 17th.
Meanwhile, The Gulf Cooperation Council began a two day meeting Monday that will likely focus on how to handle the Iranian situation adding tension to the trading session.
Francisco Blanch of Bank of America told Bloomberg, “Oil prices could increase by $40.00 per barrel should Iranian output be completely shutdown. A potential closure in the Strait of Hormuz could result in a much faster oil price escalation.”
Elsewhere, on the ICE Futures Exchange, Brent oil futures for February delivery advanced 0.07% to trade at USD103.42 a barrel, up USD9.57 on its U.S. Counterpart.
This nearly USD10.00 spread has been narrowing recently, but is still historically high. The two contracts traditionally trade within USD1.00 of each other.
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