LP:Brent oil trading at $103 as focus remains on European debt situation
Brent oil futures open Monday’s trading session at $103 a barrel as oil prices again look volatile, mainly on speculation that EU leaders may struggle in their latest attempt to contain their debt crisis that threatens to slow European economic growth and demand for oil.
Latest Brent Oil Price
In London, Brent crude oil futures for February 2012 delivery was trading at $102.87 a barrel, 07.55 GMT this morning on the ICE Futures Exchange after 4 straight trading days losses last week.
European Oil Demand
Europe’s crude demand may fall 2.8 percent in the first quarter of 2012 from this year’s fourth quarter, the US EIA said in its monthly report on 13th December.
“The demand picture is starting to look weak. You are seeing continued news that reinforces a slowdown and that’s weighing on the price of crude.” said Jonathan Barratt, MD of Commodity Broking Services, Sydney.
“The near term direction for the economy is downward, so it doesn’t surprise me that you see prices going down.” said Jeremy Friesen, a commodity strategist at Societe Generale, Hong Kong.
Meanwhile, oil traders will be watching events in Iran this week amid the lingering prospect of sanctions over Tehran’s nuclear program choking off supplies from the world’s fifth largest crude oil exporter.
“Markets will be keeping a close eye on developments regarding Iran, but at this stage it hasn’t had much impact on prices.” analysts at ANZ Bank said in a research note.
