Brent oil price trading over $81 amid euro debt concerns

Brent oil prices continued a march upwards in trading on Thursday amid continued euro debt issues hanging over global markets.

Brent crude oil futures for June delivery was at $81.40 06.00am GMT on the ICE Futures Exchange.

Meanwhile, the IEA yesterday lowered its projection for global oil demand for 2010 in the face of public finance pressures in Europe and elsewhere that could drown economic recovery “in an ocean of public debt.”

The IEA said oil prices, after suffering their biggest weekly decline in 18 months in early May 2010 on fears the Greek debt debacle could spread, are likely to average $76.50 a barrel in 2010.

The European debt crisis have pushed oil prices down. The problems in Europe have driven the dollar up as the euro lost ground. Because oil is traded in dollars, the price of crude generally falls as the dollar gets stronger and oil becomes less attractive to buyers holding foreign currencies.

With Brent’s move higher, there is now a massive $6 difference between NYMEX Light oil and ICE Brent oil futures prices.