The price of European Brent oil futures opens Wednesday’s session at around $124 a barrel as investors and traders said there was little news to drive trading, noting that the IMF had sent mixed signals about the global economic outlook, together with concerns over the price of oil.<\/p>\n
Latest Brent Oil Price<\/strong><\/p>\n In London, Brent crude oil futures for May 2012 delivery was trading at $124.58 a barrel, 07.01 GMT today on the ICE Futures Exchange. The European oil contract closed off yesterday’s trading session at $124.16, or 1.2 percent lower.<\/p>\n Oil Price Concerns – IMF<\/strong><\/p>\n IMF chief Christine Lagarde warned Tuesday that crude oil prices may spike by up to 30 percent if Iranian supplies were disrupted, causing “serious consequences” for the global economy.<\/p>\n Traders said the market remained cautious about the potential for consumer countries to release emergency stocks in the face of high prices and the potential for disruption to normal supply lines, when the July 1 embargo on European Union imports of Iranian crude takes effect.<\/p>\n Oil prices moved broadly last week after reports, denied by the US, that the UK and US had agreed on a plan to tap reserves soon.<\/p>\n “Clearly it would be a shock to economies if there was a major shortage of exports of oil out of Iran, it would certainly drive up prices for a period of time.” Lagarde told reporters in New Delhi, wrapping up a two day visit.<\/p>\n The IMF has calculated that an interruption in oil supplies from Iran could increase oil prices by 20 to 30 percent, said Lagarde, who arrived in India at the weekend from neighboring China.<\/p>\n A 30 percent rise for Brent oil futures would put the contract at over $160 a barrel, surpassing the 2008 oil price shock and record of $147.<\/p>\n “A sudden and brutal rise in the price of oil from Brent crude\u2019s current levels of $125 a barrel would have serious consequences on the global economy until other oil exporting nations were able to bridge the gap.” she added.<\/p>\n “The bulls are in control and the thinking seems to be to err to the upside.” said Tom Bentz, director, at BNP Paribas Prime Brokerage.<\/p>\n<\/p>\n