Brent oil trading over $81 and prices could go higher

3 August 2010 3 August 2010

BonTrade

Brent oil prices are trading over the $81 mark for the first time since April 2010 as oil and other commodities received a boost yesterday and many investors could be betting that prices may go higher still.

In London, Brent crude oil futures for September 2010 delivery broke through the $81 mark and was at $81.04 a barrel, 07.45 GMT on the ICE Futures Exchange.

Brent oil futures moved higher early Tuesday after breaking out of a tight trading range overnight, leading analysts and investors to talk up the chances of a run much higher ahead of key US jobs data later this week.

“The more important oil price driver will be forthcoming at week’s end in the form of the monthly US employment report.” Ritterbusch and Associates said in a report.

Will Oil Prices Hit Trading 2010 Highs Soon?

Meanwhile, Peter Beutel of trading advisory firm Cameron Hanover said the technical breakout of the $70 to $80 trading band meant oil prices now have a sound reason to advance on the 2010 highs of $87 a barrel.

A weaker dollar also helped boost oil prices as a lower US dollar also makes commodities including oil cheaper for investors buying with with other currencies.