Brent oil trading at $91, Euro debt issues continue

Brent oil prices open Tuesday’s trading session at $91 a barrel as debt issues in Europe continue with credit ratings agency Moody’s downgrade Hungary’s government bonds.

Latest Brent Oil Price

In London, Brent crude oil futures for January 2011 delivery was trading at $91.06 a berral, 06.45 GMT this morning on the ICE Futures Exchange.

Meanwhile, the ICE Dollar Index, which tracks the US dollar against the currencies of six major trading partners, fell 0.3% to 79.45.

“What is prompting some selling is concern about European sovereign debts coming back into the market. Some traders are also locking in profits, preventing oil from testing beyond the $90 level.” said Victor Shum, an energy analyst at consultancy Purvin & Gertz in Singapore.

Oil Demand Keeping Prices Bullish

Fears about European sovereign debt linger in the background, but improved crude oil demand continues to keep prices bullish.

“The global recovery especially in the US continues to erode the elevated inventory levels. Investors are increasingly convinced that oil prices will be rising over the coming months and have been adding to existing long positions.” commented Ole Hansen, senior client advisor at Saxo Bank.