Brent oil futures trading over $111, eyes on Middle East

17 March 2011 17 March 2011

BonTrade

Brent oil futures open today’s trading session back over $111 a barrel as investors eye the situation in the Middle East after Bahraini security forces carried out a violent crackdown against protesters yesterday.

Latest Brent Oil Price

In London, Brent crude oil futures for May 2011 delivery was trading at $111.23, 07.15 GMT this morning on the ICE Futures Exchange. The April Brent contract expired yesterday.

Bahrain, Saudi Arabia and Iran

In Bahrain, soldiers and riot police clashed with protesters demanding political reforms. Bahrain doesn’t produce much oil of its own, but the country is adjacent to Saudi Arabia, the biggest crude oil exporter in the Middle East.

If the Middle East uprising grows, analysts fear that it could spill over the border and affect Saudi Arabian oilfields. Experts are also worried that another OPEC heavyweight, Iran, may see similar uprisings.

Iran’s Foreign ministry spokesman Ramin Mehmanparast called on the government of Bahrain to refrain from violence when responding to the “peaceful demands” of protesters there. The Iranian spokesman also advised Bahrain to stop foreign countries from interfering in its internal affairs.

Oil Market Remains Highly Charged

“The intervention of Saudi troops in Bahrain could serve to deepen the ongoing political crisis in the country and intensify the regional power struggle between Saudi Arabia and the Iranians. The oil market remains highly charged, likely to support oil prices at elevated levels and heightened volatility.” Barclays Capital said in a report.