Brent oil prices open today’s trading session hovering near $122 a barrel as profit taking has this week seen around $5 taken off oil prices, however global oil supply remains the big concern holding oil futures near 2011 highs.
Latest Brent Oil Price
In London, Brent crude oil futures for June 2011 delivery was trading at $121.58 a barrel, 08.45 GMT this morning on the ICE Futures Exchange.
Oil Supply a Concern for Investors
Oil prices are likely to continue rising despite their recent spike, because the world’s oil reserves are dwindling, according to famous investor and commodities bull Jim Rogers.
“Where is the oil? I still want to know where is the oil? You know why the price of oil is going up? Because there is no oil. At $300 a barrel they would be drilling for oil under Buckingham palace. We will certainly have dips, we will certainly have consolidation, I hope we do. If oil goes into a spike, if it goes parabolic, you have to sell it.” said Jim Rogers to CNBC on Thursday.
Oil Supply Remains Tight
Countries that export oil are not doing enough to invest in new production, and countries that use a lot of oil are not doing enough to cut back.
With recent unrest in North Africa and the Middle East still affecting oil supply, it’s clear that although oil prices have fallen in the last few trading sessions, Brent oil futures remain bullish in the longer term. Many analysts still believe that Brent oil prices will hit $150 in the summer of 2011.
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Brent oil price trading near $122, supply still a concern
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