Brent oil price trading over $111 a barrel, looks for firm direction

Brent oil futures open today’s trading session over $111 a barrel as traders and investors remain in belief that a positive outcome for Europe’s debt situation will prevail, pushing stock markets and commodity prices higher.

Latest Brent Oil Price

In London, Brent crude oil futures for December 2011 delivery was trading at $111.40 a barrel, 07.30 GMT this morning on the ICE Futures Exchange after closing Monday’s session up 1.6 percent.

European Stock Markets

European stock markets had a mixed day on Monday but ended strongly, mainly based on the hope of a solution to debt problems surrounding Europe, however recent surveys suggested that French and German economies are still struggling to avoid recession.

Meanwhile, Asian stock markets were mixed Tuesday as investors waited for European leaders to unveil a plan to tackle the continent’s ongoing debt crisis. Markets turned cautious after solid gains in Asia the previous day, unable to extend a Wall Street rally overnight.

In Asian markets South Korea’s Kospi lost 0.3 percent to 1,892.64, Australia’s S&P/ASX 200 fell 0.6 percent to 4,230.50 and Hong Kong’s Hang Seng index rose 0.5 percent to 18,873.10. Benchmarks in India, Taiwan, New Zealand also advanced modestly.

European leaders have said they plan to unveil comprehensive plans for containing the crisis by Wednesday.

Chinese Growth Figures

Brent oil prices climbed as much as 1.6 percent on Monday, helped by reports that showed Japanese exports rose more than forecast last month and Chinese manufacturing may expand at the fastest pace in five months in October.

“The narrative is that weak demand in developed economies is more than offset by burgeoning demand in developing ones. Chinese demand growth is likely to prevent prices from falling through the floor.” said Christopher Bellew, a senior broker at Jefferies Bache, London, who last month correctly predicted Brent oil prices would not remain below $100 a barrel.

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Brent oil price trading over $111 a barrel, looks for firm direction