Brent oil trading back over $72 after steep decline in prices

Brent crude oil prices open trading higher, over the $72 mark after last week saw an 8 percent decline in oil prices, the worst drop since May 2010.

Brent crude oil futures for August 2010 delivery was up around one percent higher at $72.20 at 07.00 GMT on the ICE Futures Exchange in what appears to be a cautious trading week ahead.

Some traders are buying back into commodities and crude oil on bargain hunting today but as usual, stock markets maybe key to the short term future direction of oil prices.

All eyes will be on economic data out this week, including US non-manufacturing, retail and jobless claims figures, however investors will have some respite today as the US takes a public holiday for Independence Day.

Traders should approach the week ahead with extreme caution as the recent stock market falls across the globe have seen real fears resurface about the prospects of a descent back into recession.