Brent oil trading past $77 as oil prices set to go higher

21 July 2010 21 July 2010

BonTrade

Brent oil futures are trading higher on Wednesday afternoon, sailing past the $77 mark as many current market pointers could see oil prices go higher and through $80 a barrel in the short term.

In London, Brent crude oil futures for September 2010 delivery was trading at $77.15, 14.00 GMT on the ICE Futures Exchange which is nearly a dollar up on the day’s opening price.

IMF Says Low Oil Prices a Risk to Middle East Future

Meanwhile, economic growth in the six Gulf Arab countries is strengthening but a major risk to the outlook is if oil prices remain low for a protracted period, the IMF said today.

“This, along with projected higher oil prices, should improve fiscal and external balances,” the report said. It goes on to project that a rebound in imported food prices is likely to boost inflation to 4% in 2010. The main risk to the outlook is a sharp decline in oil prices, the report warned.

Brent crude oil futures rose for a third straight day on Wednesday as economic optimism reflected in stronger equities markets helped keep oil prices bolstered.