Brent oil trading over $85 as EU, IMF agree Irish bailout

Brent oil prices open Monday’s trading session higher and back over $85 a barrel as weekend talks on a debt bailout for Ireland are agreed by the EU, the IMF and Ireland’s government, sending the euro higher.

Latest Brent Oil Price

In London, Brent crude oil futures for January 2011 delivery was trading at $85.09 a barrel, 07.30 GMT on the ICE Futures Exchange.

Meanwhile, the euro is trading higher against the US dollar on the news, gaining 0.3 per cent against the US dollar to $1.3746. Both Brent and WTI oil prices followed the euro higher as the European Union and IMF agreed to bailout Ireland with figures of upto €90 billion euros.

Crude Oil Demand Recovering

Some analysts and traders believe that world oil demand is improving and will push oil prices higher, anticipating that emerging markets will drive oil demand growth in the next five years.

“Oil prices should find support above $80, given the strength in underlying fundamentals. Recent data releases continue to show a phenomenal pace of recovery in global oil demand.” Barclays Capital said in a recent report.