Brent oil price over $78 as stock markets trade higher

Brent oil futures are trading over the $78 mark on Thursday as global stock markets point higher, boosting oil prices and other commodities including gold.

In London, Brent crude oil futures for October 2010 delivery was trading at $78.28, 07.30 GMT on the ICE Futures Exchange after closing yesterday up over two percent.

“We’ve been in a fairly narrow range here over the last 10 trading days, and I think the market is awaiting some further impetus that will break us out one way or the other. If the stock markets can sustain some momentum, that will help.” said Andy Lebow, an oil analyst with MF Global.

“It’s hard to differentiate what is going to move this market. You’d think the fundamentals would take hold at some point, but they haven’t.” said Mark Waggoner, president of Excel Futures.

Meanwhile, gold prices peaked within 0.4% of June’s all time high on yesterday morning, before slipping back to $1258.00 an ounce.

Stock markets, gold and crude oil prices have been closely correlated in recent months, with both closely following currency markets, economic reports and US government data.

Brent oil prices fell back from session highs near $79 yesterday on a report from the US Federal Reserve that said the US economic recovery was showing widespread signs of a deceleration.