{"id":10719,"date":"2010-04-30T08:51:07","date_gmt":"2010-04-30T06:51:07","guid":{"rendered":"http:\/\/bontrade.org\/blog49\/10719\/oil-prices-back-in-85-to-90-trading-range-in-mixed-week\/"},"modified":"2010-04-30T08:51:07","modified_gmt":"2010-04-30T06:51:07","slug":"oil-prices-back-in-85-to-90-trading-range-in-mixed-week","status":"publish","type":"post","link":"https:\/\/bontrade.org\/blog49\/10719\/oil-prices-back-in-85-to-90-trading-range-in-mixed-week\/","title":{"rendered":"Oil prices back in $85 to $90 trading range, in mixed week"},"content":{"rendered":"

Oil prices are back trading in the $85 to $90 range on Friday as a mixed week of news and data in the western world tests crude oil’s support levels.<\/p>\n

US Light crude oil futures for June delivery, rose to $85.60 a barrel on the NYMEX, while in London, Brent crude oil futures for June delivery was up to $87.11 per barrel on the ICE Futures Exchange.<\/p>\n

“We still anticipate an unusually difficult trading environment going forward, with prices gyrating within about the $80 to $88 zone well into next month in response to daily stock market shifts, with the euro zone situation providing some background influence,” said Jim Ritterbusch, president of trading advisory firm Ritterbusch & Associates.<\/p>\n

Front month contracts for crude oil is currently priced below forward contracts, indicating there isn’t any concern about near term oil supply, even with signs of an economic recovery.<\/p>\n

This pricing structure, called contango, encourages buying relatively cheap oil and putting it in storage to sell later at higher prices. But traders said it increases the risk of a steep price correction later, if demand fails to materialise.<\/p>\n

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