Brent oil trading closer to $120, oil prices remain bullish

4 April 2011 4 April 2011

BonTrade

Brent oil futures open today’s trading session closer to $120 a barrel as investors remain bullish on crude oil, betting that higher oil prices are on the horizon due to oil supply issues out of Libya and Middle East tensions.

Latest Brent Oil Price

In London, Brent crude oil futures for May 2011 delivery was trading at $119.07 a barrel, 06.55 GMT this morning on the ICE Futures Exchange after hitting $119.44 early in the session.

Higher Oil Prices – Forecasts

“We continue to forecast a meaningful increase in spot Brent oil prices and price volatility in the second quarter.” commented JP Morgan oil analysts led by Lawrence Eagles.

Short Term Oil Price Buying Opportunity?

On a technical basis, Daryl Guppy, of Guppytraders says any pullback for oil prices is a buying opportunity as oil’s bias remains to the upside this week.

Middle East & Africa Tensions

Both Brent oil WTI oil prices have moved higher this year, mainly due to Middle East tensions and the situation in Libya, Africa’s star oil exporter, which until last month supplied well over a million barrels of oil per day to the world market.

“Upcoming elections in Nigeria amid the intensified unrest in the Middle East and North Africa region may add to market jitters over oil supplies.” wrote Mark Pervan, head of commodity research at Australia & New Zealand Banking Group, Melbourne.