The price of ICE Brent oil futures dipped back under $103 a barrel early Friday as traders and investors cashed in recent gains following signs of strengthening US energy demand and ahead of today’s US GDP data which is expected to be positive.
Latest Brent Oil Price
In London, ICE Brent crude oil futures for June 2013 delivery was trading at $102.88 a barrel, 10:36 GMT on the ICE Futures Exchange, or 0.5 percent lower from open.
Increased Volatility
The prospect of a slowing global economy dampening oil demand growth has already shaved $10 off the price of Brent since the start of April. Continued uncertainty over global growth may result in commodities inlcuding oil prices facing increased volatility.
“We continue to view recent weakness in the data flow as consolidation, rather than the start of a 2012 style capitulation, but remain watchful of the loss of momentum in the manufacturing sector from these key countries,” analysts from ANZ bank said in a note.
Brent Price Forecast for 2013
DNB Markets latest macro update predicts that despite the Brent price of oil being tested by weaker supply and demand factors, it will still average above $100 per barrel through 2013. This would still leave the price some $5 below the average for 2012, the Norwegian bank adds.
Geopolitical risk, potential cuts in output from Saudi Arabia, and liquidity moves by central banks will support the market it said, and therefore lends support to its forecast of $107 oil first made back in August 2012. It predicts a short term recovery in the Brent price following falls seen through the first months of this year.
DNB’s Brent oil price forecast appears conservative and on the upside whilst Angelos Damaskos, CEO of Sector Investment Managers and fund adviser to Junior Oils Trust, also said that supply fundamentals pointed to a recovery towards $120 for the commodity.
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Brent oil futures dip under $103 a barrel as traders cash in profits