Brent oil trading at $126, US dollar and Libya driving prices

11 April 2011 11 April 2011

BonTrade

Brent oil prices open the week’s trading session around $126 a barrel and will remain to be driven by the ongoing situation in Libya, while a weaker US dollar may push the price of oil higher still.

Latest Brent Oil Price

In London, Brent crude oil futures for May 2011 delivery was trading at $126.07 a barrel, 07.15 GMT this morning on the ICE Futures Exchange. Brent oil prices remain at two and a half year highs.

US Dollar Weakens – Oil Prices Gain

Oil traders and investors are closely watching the currency markets as the US dollar fell to a 15 month low against the euro last week.

The ICE US Dollar Index, which tracks the US dollar against six major world currencies was down 0.2% at 74.918 in early trading today, compared with 75.138 points at the close of the market last Friday.

Oil Price Forecast

The latest oil price forecast by a US CNBC poll of analysts and traders expect oil prices to end this week higher overall.

Six out of ten respondents expect oil prices to rise, two forecast a correction lower while the remainder believe oil prices will remain unchanged. The poll correctly predicted the direction of prices last week.

“Longer term support is still in place from the popular uprisings in Libya, Yemen and Syria as well as oil supply risk concerns over delayed Nigerian elections.” said Serene Lim, an oil analyst at ANZ.