Brent oil prices closes week at $118 on firm oil demand

Brent crude oil futures close off a bullish trading week back around $118 a barrel as oil demand from Asia remains strong, whilst NATO forces bomb Libyan oil facilities, sending Brent oil prices over 4 percent higher.

Brent Oil Futures – Closing Price

Brent crude oil futures for August 2011 delivery ended the week’s trading session at $118.33 a barrel on the ICE Futures Exchange yesterday evening, $6.87 higher than last week’s closing price of $111.50 a barrel.

Global Oil Demand

Brent oil prices are set to head higher as the Asia Pacific region continues to experience some of the fastest growth oil demand around the globe. Meanwhile, Britain’s largest oil field, the Buzzard field, has been forced to reduce output due to delays in offshore maintenance work, adding fuel to higher Brent oil prices.

Libya Oil Facilities Bombed

In an attempt to starve Muammar Gaddafi’s army of fuel and assist the rebels in moving into Tripoli, NATO forces attacked oil facilities at Brega, Libya’s biggest petrochemical complex. This has renewed fears of falling Libyan sweet crude output and further delays in bringing it back online.

Brent and WTI Oil Spread

The Brent and US WTI price differential held above $22 per barrel on Friday and is set to hit record highs again.

The spread between the oil futures contracts traded on London’s ICE Futures Europe Exchange and the NYMEX reached a record $22.29 a barrel on 15th June, based on settlement prices. The oil price difference reached $22.23 a barrel on an intraday basis yesterday.

The Brent oil price to WTI spread may widen to $40 a barrel or more between now and the middle of 2012, according to Edward Morse, head of commodities research at Citigroup Global Markets.

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Brent oil prices closes week at $118 on firm oil demand