Brent oil price hits $114 a barrel despite gloom surrounding European debt

Brent oil futures open this morning’s trading session back over $114 a barrel despite the ongoing gloomy situation surrounding Italian and Greek debt as a weak US dollar and an unexpected drop in US crude oil stocks helped push oil prices higher.

Latest Brent Oil Price

In London, Brent crude oil futures for December 2011 delivery was trading at $114.26 a barrel, 08.37 GMT this morning on the ICE Futures Exchange.

European Debt Concerns

Signs of robust demand in the world’s top oil consumers the US and China was enough to temporarily dim concerns about the spread of the European debt crisis to Italy and the impact it could have on demand.

Meanwhile, German and French officials have discussed plans for tougher rules that other EU members might not accept, potentially establishing a more integrated and potentially smaller eurozone, EU sources say.

The EU economy is edging toward recession as governments are seeking ways to end the turmoil that has rattled stock markets worldwide.

“The outlook is unfortunately gloomy. The forecast is in fact the last wake-up call. The recovery has now come to a standstill and there’s the risk of a new recession unless determined action is taken.” Olli Rehn, the EU economic and monetary affairs commissioner, told reporters in Brussels today.

“We had some good news yesterday from Italy on their bond sale, but the oil market is trading from headline to headline. Right now there’s not enough to give investors a clear direction for oil prices.” said Ben Le Brun, market analyst at OptionsXpress, Sydney.

Original post:
Brent oil price hits $114 a barrel despite gloom surrounding European debt