Brent oil trading near $120, OPEC sees 2011 supply shortage

Brent oil prices open Wednesday’s trading session hovering around $120 a barrel as the latest news from OPEC suggests that the cartel are concerned about oil supply shortages later in 2011, which would do nothing to bring oil prices lower this year.

Latest Brent Oil Price

In London, Brent crude oil futures for July 2011 delivery was trading at $120.60, 06.00 GMT this morning on the ICE Futures Exchange.

OPEC and 2011 Oil Demand

OPEC economists have pointed to the need for 2 million barrels per day more oil in the third quarter of 2011 and 1.5 million barrels per day in the last three months of the 2011.

“This shortage of 2 million barrels, if it materialises, in the third quarter and the fourth quarter, then the price will go up for sure.” said OPEC Secretary General Abdullah al-Badri yesterday.

“We don’t want to see a very high price. We don’t want to see a very low price. We would like to see a moderate price. We think high prices will affect world growth.” he added.

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Brent oil trading near $120, OPEC sees 2011 supply shortage