Brent oil price holds near 11 month high , hovers around $126 a barrel

The price of European Brent crude oil futures is holding out around $126 a barrel in early trading on Wednesday, boosted by positive data out of the US which saw the Dow Jones close at it’s highest level since 2007.

Latest Brent Oil Price

In London, Brent crude oil futures for April 2012 delivery was trading at $126.17 a barrel, 05.30 GMT today on the ICE Futures Exchange.

The Dow Jones industrial average rose 218 points and closed at its highest level since the end of 2007.

Oil Price Spread

The spread between European Brent and US WTI oil futures contracts at settlement on Tuesday was $19.51 a barrel, the widest since October 24, 2011. Brent had traded earlier to a record high in euro and sterling terms earlier in the day.

Brent oil prices are seeing gains off the back of tensions surrounding Iran, as buyers look for alternatives to Iranian crude oil amid tightening sanctions.

The EU is confident it can replace Iranian oil, including supplies from Saudi Arabia, when an embargo against Tehran starts July 1, the EU’s energy commissioner said Tuesday.

“We are very confident we can get enough oil, even in July, even in August.” said Guenther Oettinger, at an oil producer consumer Kuwait.

Brent crude oil prices have risen 17 percent this year amid supply concerns as the US, the world’s biggest oil consumer, and Europe tighten sanctions against Iran over its nuclear program. As much as 1 million barrels a day of Iranian exports may be lost because of the injunctions, the IEA said last month.

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Brent oil price holds near 11 month high , hovers around $126 a barrel