Brent oil price closes at $110, may see choppy trading next week on Euro situation

Brent oil futures closes off Friday’s trading session at $110 a barrel, oil prices staged a rebound with stock markets moving higher as investors await next week’s EU summit to gauge the situation in the Euro zone, which is affecting oil prices, commodities and currencies in general.

Brent Oil Futures – Closing Price

ICE Brent crude oil futures for January 2012 delivery ended the week’s trading session at $110.10 a barrel on the ICE Futures Exchange, or 1.1 percent higher on the day.

Brent oil futures closed last week’s session (Friday 26th November) at $106.64 a barrel.

Situation in Europe

German Chancellor Angela Merkel pushed forward Friday with what markets see as an emerging plan for more effective action to contain the European financial crisis, urging tougher rules against government overspending ahead of next week’s European Union summit.

Markets have repeatedly risen on anticipation of more aggressive action by governments, only to fall when summits result only in statements of intent or proposals that lack detail.

Gains for ICE Brent and US WTI oil prices maybe tempered by concern that the summit of European leaders next week won’t be able to stem the two year old debt crisis.

“The overall hope is that by Friday we’ll be able to get a lot more financial monetary stimulus and a comprehensive plan to save Europe. You have a huge week next week.” said Richard Franulovich, a senior currency strategist at Westpac Banking, New York.

Next week kicks off with France and Germany holding talks on Monday to stitch together yet another plan of action. On Thursday EU President Van Rompuy will publish some sort of “options paper” with proposals on what changes will be needed to support the failing EU project, then on Friday, EU leaders will discuss the plans at yet another summit in Brussels. Keeping up?

Angela Merkel yesterday said it could take years, comparing the process to a marathon. At least four EU nations would have to have a referendum if there is an EU treaty change needed.

Currency Markets – US Dollar to Euro

On currency markets, futures traders increased bets that the euro will fall against the US dollar, data from the CFTC showed.

So called net short wagers or “shorts” on the euro currency rose to 104,302 in the week ended 29th November, the most since June 2010.

More: 
Brent oil price closes at $110, may see choppy trading next week on Euro situation