Brent oil futures close the week’s trading session at $116

26 March 2011 26 March 2011

BonTrade

Brent oil futures close off the week’s trading session back near $116 a barrel as crude oil supply concerns from Libya has traders and investors uncertain about short term oil price direction.

Brent Oil Futures – Closing Price

Brent crude oil futures for May 2011 delivery ended the week’s trading session at $115.95 a barrel on the ICE Futures Exchange yesterday evening, $1.44 higher than last week’s closing price of $114.51 a barrel.

JP Morgan Forecasts Higher Brent Price

JP Morgan analysts warned in a research note yesterday that higher oil supplies from OPEC will be needed to meet summer demand and sees the strong likelihood of a price spike of up to $130 a barrel for Brent crude oil.

The analysts, citing expectations that 1.6 million barrels a day of Libyan oil will be out of the market longer than had been anticipated, raised the second quarter Brent oil price forecast to $118 a barrel, up from $105 previously. They see US benchmark, WTI crude oil futures averaging $111 a barrel next quarter.

“There is a real risk that oil producers respond to, rather than pre-empt, price signals, or perhaps wait until OPEC’s meeting in June before raising oil output. By then, it will be too late to prevent higher oil prices.” the analysts said.