Brent oil trading near $82 on US data, stock markets

5 August 2010 5 August 2010

BonTrade

Brent oil prices fell at open on Thursday in a lighter trading session, hovering at $82 as investors take stock of markets and the latest data out of the US.

In London, Brent crude oil futures for September 2010 delivery was at $81.94, 07.45 GMT on the ICE Futures Exchange.

Oil prices were hit by data released by the US Department of Energy yesterday showing a sharp increase in US distillate and petrol inventories even as US oil stocks fell by 2.8 million barrels, double the amount forecast by analysts.

“We see $80 and above as the price aptly befitting fundamentals.” Barcays Capital said in a report.

“We are maintaining a short term bullish view for now in quest of an eventual oil price advance toward the $84.50 area” said Jim Ritterbusch, president of oil trading advisory firm Ritterbusch & Associates.

European markets are expected to trade higher today following stronger than expected growth in the US services sector. Brent oil futures remain at three month highs since hitting the $80 plus mark back in April.