Brent oil price steady above $83 and may trade higher

Brent oil prices open the week’s trading session firm over $83 and may look higher as the US dollar remains weak, while global oil demand remains strong.

In London, Brent crude oil futures for November 2010 delivery was trading at $83.66 a barrel, 07.30 GMT on the ICE Futures Exchange after big gains last week.

“We have expectations of demand growth returning to the market. The current momentum built into oil futures may support pricing at this $80 plus level for a while but it remains a question whether it can be sustained over the longer-term.” said Victor Shum, an energy analyst at consultancy Purvin & Gertz in Singapore.

“For the oil markets, putting a floor under inflation expectations and easing concerns about deflation is important and bullish for oil prices.” said Mike Wittner, Societe Generale’s head of oil market research.

Meanwhile, the International Energy Agency said last Friday it anticipated upward pressure on oil prices in the second half of 2011 due to a projected decline in oil stocks.