Brent oil trading at $117, up over 23 percent for Q1 of 2011

1 April 2011 1 April 2011

BonTrade

Brent oil futures open Friday’s trading session at $117 a barrel as both Brent and WTI oil prices move higher on supply concerns while Brent ends the first quarter of 2011 over 23 percent higher.

Latest Brent Oil Price

In London, Brent crude oil futures for May 2011 delivery was trading at $117.17 a barrel, 06.20 GMT this morning on the ICE Futures Exchange.

Brent Crude’s Big Leg Up

ICE Brent crude oil futures have seen a big leg up in Q1 of 2011, registering over 23 percent higher than the year’s opening price of $95.01 Brent Oil Price – 3rd Jan 2011

WTI oil futures, the US NYMEX contract also gained, but not as much, rising 17% in this year’s first quarter, compared with a 15% rise in the whole of 2010.

Brent oil prices are still well below the record near $147 a barrel, hit in 2008, however there is concern about further increases because, when oil suddenly gets more expensive, it can drag down economic growth significantly.

It seems that oil is back as the king of commodities and rising oil prices may have far reaching implications for other commodity markets, because energy is a major input cost for producing other materials and, if pricier oil slows economies, demand for other goods can take a hit as well.