Oil prices hanging onto trading gains as US markets slide

Both Brent and Light crude oil prices are so far hanging onto trading gains today and have had a roller coaster ride, posting two percent gains early on then falling back as US stock markets slide lower.

In London, Brent crude oil futures for September 2010 delivery was at $77.06, 17.00 GMT on the ICE Futures Exchange after hitting $78 earlier in the session, while US Light crude oil futures were at $77.73.

The US Dow Jones was trading almost 100 points lower at midday in New York after investors digested the latest US jobs stats and also some of the latest US company results which made grim reading.

NASDAQ technology stocks led a downturn in US markets, lead by companies including IBM and Intel, as well as consumer names such as Kraft Foods and Procter & Gamble.

Oil prices couldn’t commit to moving in either direction for most of the session, even as US government data offered a gloomy window onto the economic recovery.

“It failed to rally, it failed to sell off, it’s closing where it opened,” said Walter Zimmerman, an analyst with United ICAP.

For the past two months, both Brent and WTI crude oil prices have been stuck in a narrow range between the $70 and $80 mark, failing to post gains above $80 on several occasions.

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