Brent oil price dips to $78, finding $80 mark a struggle

22 June 2010 22 June 2010

BonTrade

ICE Brent crude oil futures are trading lower on Tuesday in Asia as investors look to global recovery signs that justify oil prices near the $80 mark.

In London, Brent crude oil futures were trading at $77.98 midday Singapore time on the ICE Futures Exchange.

Goldman Sachs Revised Oil Price Forecast

Goldman Sachs cut its crude oil price forecasts, but still expects prices to rise in 2010 as the global economy grows an estimated 4.9 percent this year. Goldman Sachs now expects oil prices to rise to $87 a barrel in three months, down from last month’s forecast of $96.

Some analysts believe that oil prices are not able to sustain any upward momentum as any move by the Brent oil contract above $80 per barrel will likely prompt profit taking, with a lack of bullish fundamental cues leaving investors unconvinced that the market’s recent rally is sustainable.