{"id":12792,"date":"2010-12-17T08:50:08","date_gmt":"2010-12-17T07:50:08","guid":{"rendered":"http:\/\/bontrade.org\/blog49\/12792\/brent-oil-futures-hover-at-92-analysts-bullish-on-prices\/"},"modified":"2010-12-17T08:50:08","modified_gmt":"2010-12-17T07:50:08","slug":"brent-oil-futures-hover-at-92-analysts-bullish-on-prices","status":"publish","type":"post","link":"https:\/\/bontrade.org\/blog49\/12792\/brent-oil-futures-hover-at-92-analysts-bullish-on-prices\/","title":{"rendered":"Brent oil futures hover at $92, analysts bullish on prices"},"content":{"rendered":"

Brent oil futures open Friday’s trading session hovering firm around $92 a barrel as the year end closes in, analysts are repeating bullish forecasts for oil prices into 2011.<\/p>\n

Latest Brent Oil Price<\/strong><\/p>\n

In London, Brent crude oil futures for February 2011 delivery was trading at $92.03 a barrel, 07.30 GMT this morning on the ICE Futures Exchange.<\/p>\n

Meanwhile, the ICE Dollar Index, which track the US dollar against six major world currenices was flat at 80.15. Oil prices are broadly moving in line with the value of the US dollar, however this may soon change as traders look to world oil demand forecasts for 2011.<\/p>\n

Crude Oil Demand on the Rise<\/strong><\/p>\n

World crude oil demand is expected to climb to 87.44 million barrels per day in 2011. With oil demand on the rise, it’s hard to see oil prices falling back to lower levels in the short to medium term as emerging market countries appetite for crude oil has no signs of slowing down, with China and India the driving forces.<\/p>\n

The only force which could drive prices lower seems to be large increases in the value of the US dollar, which is unlikely at this time.<\/p>\n

2011 – $100 Oil and Beyond – Forecasts<\/strong><\/p>\n

Oil prices have risen eleven percent in 2010. The IEA, in its monthly report on 10th December upgraded its demand forecast for 2011, citing gains in North America and China.<\/p>\n

“It’s an amalgamation of all these countries increasing oil demand. A little bit here, a little bit there, when you put it all together, it’s a lot.” says Mark Waggoner, president of Excel Futures, estimating that oil prices could push as high as $130 a barrel in 2011.<\/p>\n

In a report out yesterday, Goldman Sachs re-stated that WTI crude oil prices, the US contract traded in New York, will rise to $89 a barrel within three months, $100 within six months and $105 within a year.<\/p>\n

Meanwhile, Barclays Capital said its forecast for the 2011 average for Brent oil prices would be $91 and its oil price forecast for the 2012 average for Brent oil is $105. The $91 average for 2011 implies “a sustained period of trading above $100 at points during the year.”<\/p>\n

Oil prices last traded above $100 in October 2008 as commodities and equities fell following the collapse of Lehman Brothers.<\/p>\n

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