Brent crude oil prices are trading near $107 a barrel early on Monday as global stock markets look set to take a battering after Friday’s US debt downgrade has traders and investors in sell mode.<\/p>\n
Latest Brent Oil Price<\/strong><\/p>\n In London, Brent crude oil futures for September 2011 delivery was trading at $106.79 a barrel, 07.55 GMT this morning on the ICE Futures Exchange.<\/p>\n Oil Price Forecast<\/strong><\/p>\n “We maintain that commodity markets will continue to tighten as long as global economic growth remains broadly positive and the emerging market economies in particular continue to perform. We expect that the market will continue to tighten to critical levels by 2012, pushing oil prices substantially higher to restrain demand.” Goldman Sachs said in a report.<\/p>\n “A drastic weakening of sentiment has brought oil prices down sharply, with sovereign debt fears key in a mounting loss of faith in economic, and hence demand, prospects,” Barclays Capital said in a report.<\/p>\n Stock Markets<\/strong><\/p>\n FTSE is expected to fall by more than 100 points in early trading today as traders react to S&P’s downgrading of the US AAA credit rating, and the latest efforts to hold the Eurozone together.<\/p>\n Stock markets fell sharply in Asia early Monday, while gold, a classic place to hide in times of turmoil, soared to a record high, nearing $1,700 an ounce.<\/p>\n “There is too much that feels reminiscent of 2008.” said economist Diane Swonk at Mesirow Financial in Chicago.<\/p>\n<\/p>\n