Brent oil price trading over $78 and looking bullish

17 June 2010 17 June 2010

BonTrade

Brent crude oil prices are trading over the $78 mark on Thursday and are looking bullish as global stock markets get a boost.

Brent crude oil futures rose to $78.02 a barrel midday Singaproe time on the ICE Futures Exchange.

Oil prices fell below $70 last month amid worries that Europe’s debt crisis would derail the global economic recovery and hurt demand for crude oil.

Although oil prices have recovered, supplies remain well above average. Crude supplies increased by 1.7 million barrels last week, the Energy Department’s Energy Information Administration said Wednesday. Analysts were looking for a decline of 1.75 million barrels.

Brent oil futures had already rallied yesterday, along with global stock markets as investors grew more confident about the global economic recovery.

So far this week, brent oil prices have also benefited from a weaker US dollar, which tends to boost demand for dollar-priced commodities including oil futures, as they become cheaper for buyers holding stronger currencies.