FXstreet.com (Barcelona) - Despite coming off its recently recorded 2-week high of $85.90 over Asia, the most active crude contract for January delivery remains buoyed to the upside of $85.00 a barrel on strong demand expected for the winter season. By mid-day over Europe, the crude future trades at $85.47 where it is overall slightly lower on the day.
A strong US dollar due to the euro-zone debt crisis and fears of contagion weighs heavily on crude oil today along with other dollar-denominated commodities. In particular, the US dollar has reached a 10-week high against the euro, as the cost of borrowing in the periphery soars to record levels. Still however, expectations for strong oil demand in the cold winter are keeping prices afloat while the market awaits upcoming inventory data for further direction.
