Brent oil ends 2010 near $95, weak US dollar supports

1 January 2011 1 January 2011

BonTrade

Brent oil futures say goodbye to 2010 with the highest closing price of the year, as all the factors necessary for a sustained move higher in oil prices appears to be lined up for 2011.

Brent Oil Futures – Closing Price

Brent crude oil futures for February 2011 delivery ended the week’s trading session at $94.59 a barrel on the ICE Futures Exchange, while the ICE US Dollar Index remained flat at 79.31.

Highest Year End Close Since 2007

Brent crude oil futures surged the most in four weeks yesterday, to it’s highest year end close since 2007.

Increasing oil demand from developing countries including China, together with cold weather in Europe and the US helped push oil prices back nearer $100 a barrel.

Oil demand in China rose by 10% in 2010 and analysts are forecasting another 5% increase for 2011.

Get Ready for $100 Oil

Brent oil prices could see a surger higher next week, when markets open and traders and portfolio managers return to work. Investment flows into oil futures in the first week of every month are typically strong.

“Heading into the new year, $100 is inevitable. It depends on how the economy grows. We could even get to new record highs.” said Carl Larry, president of Oil Outlooks & Opinions.