Brent crude oil trading at $116 as debt concerns hit markets

Brent crude oil prices open today’s trading session at around $116 a barrel as Monday saw uncertainty in Europe over the debt situation in Greece to pile back into the US dollar, capping oil price gains for now at least.

Latest Brent Oil Price

In London, Brent crude oil futures for September 2011 delivery was trading at $116.27 a barrel, 07.10 GMT this morning on the ICE Futures Exchange.

Safehaven US Dollar?

“The focus is back on Europe and people are running for safehaven back into the US dollar.” said Phil Flynn, oil analyst at PFG Best in Chicago. A stronger US dollar typically pressures oil prices by making US dollar denominated commodities more expensive for holders of other currencies.

Oil Market This Week

Oil markets are likely to continue tracking currency markets this week in the absence of fundamental news, according to analysts and investors.

However, Europe’s debt crisis has also weighed on Brent oil prices because it has boosted general concern that energy demand could be weakening in the area.

But with strong growth in emerging economies like China and concerns about supply from Libya and elsewhere in the Middle East and Africa have kept a floor under Brent oil prices around the $110 mark.

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Brent crude oil trading at $116 as debt concerns hit markets