Brent oil futures firm at $103, Middle East driving oil market

18 February 2011 18 February 2011

BonTrade

Brent crude oil futures open today’s trading session firm near $103 a barrel as tensions in Middle Eastern countries continue to drive short term Brent oil futures higher.

Latest Brent Oil Price

In London, Brent crude oil futures for April 2011 delivery was trading at $102.97 a barrel, 08.05 GMT this morning on the ICE Futures Exchange.

Middle East Driving Brent Price Higher

Bahrain has become the latest hot spot among the Middle East protests of 2011 but Friday prayers across the region could yet see renewed clashes between demonstrators and the police.

The situation in Bahrain is so serious that the first Formula One Grand Prix of 2011 could be cancelled if the political unrest does not ease soon, Bernie Ecclestone, the head of the sport, has said.

“As the unrest continues, the market has no other choice but to head higher.” said Tony Rosado, a broker at GA Global Markets.

The price difference between WTI NYMEX oil and ICE Brent contracts has spread to record levels since anti government protests erupted in Egypt in late January.

Traders are buying Brent oil on worries that any disruptions to Middle East crude oil supplies could affect the main European market while the WTI NYMEX contract has been held lower, mainly by growing oil supplies in the US.