Brent oil trading back at $123, investors guess future prices

Brent oil futures open Thursday’s trading session back at $123 a barrel as both traders and investors attempt to guess where crude oil prices are heading in the short term, with oil supply, demand and the US dollar driving the market.

Latest Brent Oil Price

In London, Brent crude oil futures for May 2011 delivery was trading at $123.07, 0745 GMT this morning on the ICE Futures Exchange.

Libya Oil Supply Remains Weak

Libyan rebels this week turned down an African Union ceasefire plan that would have left Muammar Qaddafi in power. Libya, holder of the largest crude oil reserves in Africa, has been effectively split since the conflict began in February.

Libya’s oil supply remains weak with the country pumping only 390,000 barrels a day in March, compared with 1.6 million barrels in January.

“Every time there is something going on in Libya, you’re not seeing that huge rally in crude oil prices anymore. We’ve just been grinding, maybe a dollar or so up or down.” said Keith Leung, an options trader with Hudson Capital Energy in Zug, Switzerland.

Weaker US Dollar

Meanwhile, a weaker US dollar is helping to firm up both oil prices and other commodities. The ICE US Dollar Index, which tracks the US dollar against six major currencies fell to 74.676 in early trading this morning.

A weaker dollar tends to lift oil prices higher as oil becomes cheaper for buyers using other currencies.

Oil Demand Forecast

Meanwhile, OPEC has raised its forecast for worldwide oil demand in 2011 to 87.9 million barrels per day from the previous month’s forecast of 87.8 million bpd, OPEC said on Wednesday. With oil demand set to remain at all time highs, it would make sense to assume that any sizable fall in oil prices will be short lived.

• Brent oil trading closer to $120, oil prices remain bullish
• Brent crude oil futures closes week at $114, Libya in focus
• Brent oil trading over $117, oil supply now a real concern
• Brent oil futures trading at $91, US dollar remains firm
• Brent oil price falls to near $120 amid oil supply concerns
• Brent oil price trading over $123 and heading skywards
• Brent oil trading near 2011 highs, Libya remains main driver
• Brent oil trading at $121, Iran’s President forecasts $150 soon
• Brent oil trading at $117, up over 23 percent for Q1 of 2011
• Brent crude oil hangs near $115 in thin trading volumes
• Brent crude trading at $115, Middle East still driving oil prices
• Brent oil trading at $108, Libya oil exports grind to a halt
• Brent oil price hovers at $100, market eyes Egypt tensions
• Brent oil trading firm at $98, ICE US Dollar Index weakens
• Brent oil price trading firm over $98 on weaker US dollar
• Brent oil price ends week over $126 on Middle East, dollar
• Brent oil trading near $122, JP Morgan expects higher prices
• WTI oil trading firm at $108, crude prices remain bullish
• Brent oil trading near $115, Libya tensions prop up prices
• Brent oil trading near $115, Middle East driving oil prices

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Brent oil trading back at $123, investors guess future prices