Brent oil price holds at $103, crude oil supply in focus

Brent crude oil futures end the week’s trading session firm at $103 a barrel as crude oil supplies from Middle Eastern countries continues to worry many, as uncertainty holds Brent oil at two year trading highs.

Brent Oil Futures – Closing Price

Brent crude oil futures for April 2011 delivery ended the week’s trading session at $103.06 a barrel on the ICE Futures Exchange, which is $1.65 higher than Brent’s close last week at $101.41.

Suez Canal Route Still a Concern

Brent oil futures have rallied on recent protests in the Middle East, in part due to worries about oil transport to Europe through Egypt’s Suez Canal.

Those gains, plus a supply glut at the US hub of Cushing, have reversed the typical relationship between ICE Brent and NYMEX WTI oil futures to record levels.

“Brent crude oil is likely being impacted by geopolitical tensions in the Middle East because of the potential impacts in the Mediterranean markets served by Brent.” noted Adam Sieminski of Deutsche Bank.

Analysts say the price of Brent, has been affected more than traditional benchmark WTI by events in the Middle East, because it is a reference price for oil produced in other areas, such as Africa and South America. Oil production interruptions also have helped keep Brent oil prices above $100 a barrel since the end of January.