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Brent oil closes off near $115 as banks turn bullish on prices
Published on May 28, 2011 by oilprices · No CommentsBrent oil closes off a steady trading week near $115 a barrel after bullish comments from major investment banks including Barclays Capital, Goldman Sachs and Morgan Stanley push the European oil contract back into a possible vertical price ascent.
Brent Oil Futures – Closing Price
Brent crude oil futures for July 2011 delivery ended the week’s trading session at $114.98 a barrel on the ICE Futures Exchange yesterday evening, $2.55 higher than last week’s closing price of $112.43 a barrel.
Oil Prices Too Conservative?
Following bullish notes on Brent crude from Goldman Sachs and Morgan Stanley, Barclays Capital said that its 2011 forecast of $102 a barrel for Brent crude could be too conservative. Brent climbed to $115 barrel on the news.
Early in the week Goldman Sachs raised its 2011 year end oil price forecast for Brent crude from $105 to $120 a barrel and from $120 to $140 a barrel for the end of 2012. Goldman, which correctly advised investors to sell oil and copper last month before a price slump seem to have now reversed their forecast for oil prices.
Meanwhile, Morgan Stanley upped its forecast for the average Brent oil price from $100 to $120 a barrel for 2011 and from $105 to $130 a barrel in 2012.
Tags: banks, barclays, brent, Brent oil, forecast, Goldman Sachs, investment, morgan stanley, oil, price, prices, trading