Brent oil trading at $121, Iran’s President forecasts $150 soon

5 April 2011 5 April 2011

BonTrade

Brent oil futures open Tuesday’s trading session at 2011 highs over $121 as Iranian President Mahmoud Ahmadinejad forecasted that oil prices could increase to $150 a barrel due to political circumstances, not market factors.

Latest Brent Oil Price

In London, Brent crude oil futures for May 2011 delivery was trading at $120.87 a barrel, 06.25 GMT this morning on the ICE Futures Exchange. Brent oil futures closed off Monday’s trading session at $121.00.

“The political circumstances are deciding the prices, not the market ones. You asked me if I think the prices will increase? Yes the price of oil will increase. I think in a time frame it can reach around $150.” Ahmadinejad told reporters at a news conference in the last few hours.

Iran believes that the recent oil price increases do not pose a problem and reiterated last week that no decision was required from OPEC, while Kuwait believes that current oil prices are too high.

Higher Oil Prices – Worldwide Trend

Iranian President Ahmadinejad is not alone in forecasting that oil prices could surge higher. Many analysts are now talking about $150 Brent oil prices for this summer, while others are saying that the world is following a trend into higher prices through higher crude oil demand.

UBS senior economist Robin Clements said the rises were part of a decade long worldwide trend toward higher oil prices.

“With the growth of fuel use in places such as India, the only long term solution was to change consumer behaviour. It looks like oil prices are not going to go down any time soon. We as consumers either need to learn to live with it or other spending has to go down. Or we have to adapt to new technology.” said Clements.