Brent oil price hangs at $77 as analysts expect declines

Brent crude oil is trading back near the $77 mark and is hanging onto recent gains amid analyst expectations that oil prices will decline further from here.

In London, Brent crude oil futures for September 2010 delivery was at $77.30 a barrel, 18.15 GMT on the ICE Futures Exchange.

“We are now at the upper end of the oil futures trading range and should come off, unless something unexpected happens,” said Carsten Fritsch, a Commerzbank AG analyst in Germany. “Fundamentals still look pretty poor and don’t justify oil prices close to $80 a barrel.”

In a recent survey, thirteen of 34 analysts, or 38 percent, forecast crude oil prices will decline through to July 30th 2010. Eleven respondents, or 32 percent, predicted that crude oil futures will be little changed and 10 saw an increase. Last week 39 percent of analysts forecast a drop, however oil prices rose.

Something Unexpected Could Happen? – Bonnie

Oil prices are holding onto recent gains as an unexpected tropical storm named Bonnie hit the Bahamas and was on a track to take it across or near southern Florida and into the Gulf of Mexico tomorrow.

Brent and WTI oil prices have probably received a boost this week due to the new Gulf storm which has shut down operations at both the BP oil spill site, and general Gulf US oil production.

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Brent oil price hangs at $77 as analysts expect declines