Brent oil price heads back towards $70 on lower markets

ICE Brent crude oil prices seem to be heading back down towards the $70 mark today as lower stock markets helped take around $3.50 off the price oil a barrel of Brent oil.

In London, Brent crude oil futures for August 2010 delivery fell over $2.50 in the last 30 minutes alone and is currently at $71.66 16.30 GMT on the ICE Futures Exchange.

“Right now the market is telling us that without the aid of a positive economic outlook or signs that the recovery is proceeding, the weak fundamentals are preventing oil prices from pushing toward $80″ a barrel, said Gene McGillian, an analyst with Tradition Energy.

Oil trading sentiment turned bearish and crude prices for both WTI and Brent contracts fell amid concerns that economic recovery in the US, Europe and China will slow, curbing demand in the world’s two largest energy consumers.

Meanwhile, the Euro gained ground against the US dollar and is trading 1.59 percent higher at $1.2427 on signs that European banks are less strapped for cash than feared.