Brent oil price nears $96 after settling at eight week low

26 January 2011 26 January 2011

BonTrade

Brent oil futures open Wednesday’s trading session back near $96 a barrel as oil prices fell yesterday to eight week lows on economic concerns in the UK and the US.

Latest Brent Oil Price

In London, Brent crude oil futures for March 2011 delivery was trading at $95.74 a barrel, 07.00 GMT this morning on the ICE Futures Exchange, after closing yesterday’s trading session at $95.26.

UK and US Data Unsettles Recovery Plans

A surprise contraction in the UK economy and weak data in the US that shook confidence in the global recovery.

Yesterday, the UK reported that GDP fell 0.5% in the fourth quarter of 2010, the first quarterly contraction in GDP since the third quarter of 2009. Meanwhile, US house prices continued to fall.

“Maybe, just maybe, there are still risks in this global economy of ours.” Phil Flynn, analyst at PFGBest Research in Chicago said, referring to data showing Britain’s economy contracted in fourth quarter 2010 as December’s heavy snow took more of a toll than forecast.

Oil prices have fallen over the last six trading sessions, the longest series of declines since July.