Brent oil trading up 3 percent near $77, markets see boost

13 July 2010 13 July 2010

BonTrade

Brent oil prices have risen over 3 percent since today’s open and are trading near the $77 a barrel mark as European and US stock markets see a boost higher on data and company earning results.

In London, Brent crude oil futures for August 2010 delivery was up to $76.53 at 17.00 GMT on the ICE Futures Exchange in a busy trading session.

Investors have been eagerly awaiting the second quarter of 2010 US earnings season for confirmation that a recent stock rally on the markets was really justified.

The Stoxx Europe 600 index rose 1.9% to finish at 255.99, its sixth consecutive daily rise as European banks rallied, with Deutsche Bank gaining 2.8%, Credit Agricole rising 3.7% and Barclays gaining 4.2% respectively.

Oil Prices and the IEA’s Oil Report

Meanwhile, the IEA today said it was assuming that oil prices for 2011 would average $79.40 per barrel, while forecasting a fall in oil production of 30,000 barrels per day from the Gulf of Mexico in 2010 to 2011 owing to the effects of the BP oil spill disaster.

Standard Chartered Bank’s Brent Oil Price Forecast for 2010

Brent crude oil may surpass this year’s high of $89.58 a barrel after prices rebounded against a rising channel formation, according to technical analysis by Standard Chartered Plc.

Standard Chartered forecast that Brent oil prices will first rebound to $79.86 a barrel, the highest price of the past seven weeks, reached on June 21st 2010. Brent oil prices may then proceed to $82.94, and then potentially to this year’s peak of $89.58, reached on May 3rd, according to the bank.