Oil prices hangs under $80, future price forecast uncertain

Both Brent and Light crude oil prices end the week’s trading session at four week highs although neither contract could break the $80 mark and short term future oil price forecasts remain clearly uncertain.

In London, Brent crude oil futures for September 2010 delivery ended the week at $77.55 on the ICE Futures Exchange, while US Light Crude oil futures ended at $79.08 on the NYMEX in a see saw trading week.

With the current BP oil disaster still playing out and uncertain markets in Europe and the US affecting prices, it’s difficult to predict how crude oil futures will fair in the short term, many analysts have very different views going forward.

“For now, investors believe the global market place will make it out of the funk we are currently in and markets will trade higher,” Sander Capital said in a report.

Meanwhile, JBC Energy said in a report that uncertainty about the pace of recovery would still weigh on oil prices. “We believe that we are close to the next downward cycle, with or without having reached the $80 threshold. On the economic side there are too many weak spots and few signs for hope.”

However, oil prices above the $80 mark could be short lived if weakening US economic data or another dip in US and European stock markets re-emerge back in uncertain times.