Brent oil trading near $115, Libya tensions prop up prices

30 March 2011 30 March 2011

BonTrade

Brent oil prices open today’s trading session slightly lower, near $115 as tensions in Libya continue to prop up both Brent and WTI oil prices as doubts emerge over the resumption of Libyan crude oil exports.

Latest Brent Oil Price

In London, Brent crude oil futures for May 2011 delivery was trading at $114.63 a barrel, 04.30 GMT this morning on the ICE Futures Exchange. Brent oil closed off yesterday’s trading session up 0.4 percent at $115.20 a barrel.

Oil Prices to Stay Bullish

“The big underlying bullish concern is the uncertainty out of the Middle East, what’s going to happen with Libya, Yemen, Syria and Bahrain. This market’s going to have a difficult time moving lower.”
said Peter Donovan, vice president and oil trader at Vantage Trading in New York.

Oil prices were pulled higher by doubts over how quickly Libyan crude oil would return to the market. Libyan rebels have said the country could begin exporting crude oil again within a week. Meanwhile, Qatar has offered to facilitate the sale of Libyan oil from rebel held territory, according to the UK’s foreign secretary.

However, uncertainty persists over the feasibility of such a quick return of oil to the market and traders were hesitant to bet on a major move lower, especially as unrest persisted elsewhere in the region and the Middle East. Libya has seen virtually all of its 1.3 million barrels a day in oil exports evaporate due to the conflict, which continues to drive oil prices higher.