Oil prices recede as dollar bounces back

Oil prices receded from their recent highs as the Dollar bounced back against major currencies, a move prompted largely by concerns expressed by the ECB's Trichet over the health of the Eurozone - whilst inflation was deemed high, the spectre of slowing growth is beginning to worry the central bank.

The pull-back in the oil markets also reflects the fact that the market has got somewhat ahead of itself and these levels cannot be justified either technically or fundamentally. Todays session is likely to see further falls on week end profit-taking and further scrutiny of the ailing US economic landscape.