Brent oil ends week trading near $77 on higher markets

Brent oil prices end the week’s trading session up over three percent on Friday as higher stock markets in Europe and the US get a boost from US Federal Reserve options.

In London, Brent crude oil futures for October 2010 delivery ended trading at $76.93 a barrel on the ICE Futures Exchange, up around $2.50 on the day.

Crude oil futures rose for the third straight day after the Fed’s Bernanke told that the Fed is committed to supporting the US economy and has the tools to do so. While he stopped short of announcing new action, gains across many markets indicated that investors were convinced of the Fed’s willingness to step in.

The latest news from the US should drive the US dollar lower and give commodities and oil prices a bounce up.

However, some analysts remain concerned there is too much oil and not enough oil demand from the US market to use it up as a report earlier this week showed combined US oil stocks at their highest level in at least 27 years.

That has some analysts warning that any more disappointing news on the economy could send crude prices falling again.

“The market should be in neutral. I just don’t see demand picking up.” said Mark Waggoner of Excel Futures.

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