Oil prices trading near 2010 highs as OPEC holds output

Oil prices are trading nearer to their 2010 highs as OPEC agrees to keep to its existing oil output quota unchanged, which was widely expected.

US Light crude oil futures is currently trading around one percent higher at $82.43 a barrel on the NYMEX, while in London, Brent crude oil futures on the ICE Futures Exchange traded up 1.1%, higher at $81.44 a barrel.

Oil prices have a strong chance of making another run Wednesday at surpassing the 2010 intraday high of $83.95 a barrel, set on January 11th 2010. “They tried to sell out below $80 and couldn’t do it, if we break through the $82.76 level, it just speaks to the momentum in the market,” said Addison Armstrong, an analyst with Tradition Energy.

OPEC, the oil producers’ cartel is already exceeding its stated production target of 24.84 million barrels a day, but expects demand to mop up that extra.

“Asia is where all the demand is coming from,” said David Carbon, head of economic research at DBS bank in Singapore. “The outlook for commodities like oil just has to be moving up.”

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