Brent oil price trading at $100, OPEC comments support

7 February 2011 7 February 2011

BonTrade

Brent oil futures open Monday’s trading session flat at $100 a barrel, but oil prices may get a lift after comments by OPEC member countries suggesting that Brent oil at $110 is not unlikely.

Latest Brent Oil Price

In London, Brent crude oil futures for March 2011 delivery was trading at $100.04 a barrel, 08.20 GMT this morning on the ICE Futures Exchange.

OPEC Member Comments Bullish for Oil

OPEC member country Kuwait said at the weekend that crude oil prices could exceed $110 a barrel if Egypt’s unrest continued.

Venezuela said that oil prices could more than double to $200 if the Suez Canal closed.

Iran, which holds the rotating OPEC presidency, said there would be no need for an emergency OPEC meeting even if oil prices hit $120.

Unrest in the MIddle East and Oil Prices

What really worries traders is that unrest in Tunisia and Egypt could fuel similar protests in bigger oil producers such as Libya, or even Saudi Arabia, creating massive uncertainty over oil supplies.

Venezuela’s oil minister Rafael Ramirez, who is usually hawkish on prices, said on Friday that OPEC would call an emergency meeting if the Suez Canal in Egypt closed.

“There is sufficient oil in the market and there have been no interruptions, but if they close Suez, that could take the oil price to $200.” he told reporters.

Money managers increased their net long crude oil futures positions in the week through 1st February to 176,448 from 155,487 positions.