Brent oil opens trading near $75, investors take profits

Brent oil prices have opened the week trading around the $75 mark as investors sold futures contracts to lock in gains following a broad rally last week.

In London, Brent crude oil futures for August 2010 delivery was at $75.02 a barrel at 07.00 GMT on the ICE Futures Exchange.

“Some profit taking is coming into the market,” said Ken Hasegawa, a commodity derivatives sales manager at broker Newedge Group in Tokyo.

Meanwhile, US hedge fund managers and other large speculators reduced their net long position in oil futures for a second week, US Commodity Futures Trading Commission data showed.

Speculative long positions, or bets that oil prices will rise, outnumbered short positions by 26,215 contracts in the week ended July 6th 2010.

Oil investors also often look to equities as a barometer of overall investor sentiment, and all major Asian stock markets rose this morning, adding to an upside possibility for oil prices.