Brent oil price hits $104, traders bullish amid supply concern

17 February 2011 17 February 2011

BonTrade

Brent oil prices open Thursday’s trading session over $104 a barrel as both traders and investors remain bullish for Europe’s oil contract amid oil supply concerns as more Middle Eastern countries hold protests for better conditions.

Latest Brent Oil Price

In London, Brent crude oil futures for April 2011 delivery was trading at $104.10 a barrel, 04.30 GMT on the ICE Futures Exchange.

Pro-democracy demonstrations stretched into a third day in Bahrain, while police and anti regime protesters clashed in Yemen and Libya, the latest country in the region hit by demands for change.

Meanwhile, Israel’s foreign minister said two Iranian warships planned to sail through the Suez canal and called the move the latest “provocation” by Iran, which Israel sees a major threat. Iran’s geographical distance from Israel has kept them from open confrontation, but Syria is one of Israel’s neighbouring foes and an ally of Tehran.

The latest news out of the Middle East lifted Brent crude oil prices to 29 month highs and added to Middle Eastern jitters after reports of clashes in Iran, Yemen and Bahrain, raising concerns about disruption to oil supplies from the region.

Troubles in the Middle East

“Troubles in the Middle East are back on the agenda, protests in Bahrain and Saudi Arabia have drummed up political tension.” said Rob Montefusco, an oil trader at Sucden Financial.