Brent oil prices open Thursday’s trading session higher over $107 a barrel as markets in Asia remain subdued after another sell off in the US may prompt European stock markets to fall further, however oil futures are seeing a turnaround with Brent closing 4 percent higher yesterday.<\/p>\n
Latest Brent Oil Price<\/strong><\/p>\n In London, Brent crude oil futures for September 2011 delivery was trading at $107.22 a barrel, 07.35 GMT this morning on the ICE Futures Exchange.<\/p>\n French Rating Concerns<\/strong><\/p>\n The Dow Jones closed 520 points lower in overnight trading on Wall Street amid concerns that France would become the next economic superpower to lose its AAA rating.<\/p>\n On Wednesday, France’s Cac 40 share index ended 5.5 percent lower despite the French government’s assurance that its AAA credit rating was not under threat.<\/p>\n The stock market uncertainty continues and Brent oil prices may well again trace movements of European stock markets today, although who can be sure?<\/p>\n Brent Oil Price Forecasts<\/strong><\/p>\n Brent oil prices fell from highs of more than $120 a barrel in April to settle at lows of $102 a barrel this week as stock markets around the world slumped. But oil prices have started to break free from the trend. Is oil oversold?<\/p>\n “We’ve been negative on oil prices for a while and became more convinced after the recent economic data. We did not, however, expect such a strong downward move in such short period of time.” says Eugen Weinberg, head of commodity research at Commerzbank.<\/p>\n The fall in oil prices, largely due to concerns about sovereign risk in countries such as Spain and Italy, as well as the deteriorating economic picture in the US, signifies a new reality that has to be priced into the market, according to Weinberg.<\/p>\n Recent economic events have not yet affected Goldman Sachs view of the Brent contract. Its 12 month forecast puts Brent oil futures at an average of $130 a barrel next year and WTI at $126.50 a barrel.<\/p>\n But in a Commodity Watch report released on 8th August, Goldman analysts said the upside risk skew to this commodity price forecast has been reduced.<\/p>\n<\/p>\n