Brent oil price firm over $76 and could trade higher

Brent oil prices are trading up today over $76 a barrel and could move higher as a mixed market suggests that oil futures could be undervalued.

In London, Brent crude oil futures for September 2010 delivery was trading at $76.61 a barrel, 08.00 GMT on the ICE Futures Exchange, a whole dollar higher than it’s counterpart, US WTI Light crude.

Brent crude oil futures pushed higher in trading yesterday but prices were muted relative to the strong gains in world stock markets.

Meanwhile, the discount on WTI Light crude oil futures for delivery in 2012 compared with ICE Brent futures could close again as the US government restricts deepwater drilling. The US could see four percent of its daily oil production disappear if US President Obama extends a six month ban on offshore drilling.

Crude oil shipments for 2012 have been cheaper on the NYMEX than Brent traded on London’s ICE Futures Exchange almost every day since April 2010 amid a surplus of WTI crude, the US benchmark blend.

In currency markets, the ICE Dollar Index, which tracks the US dollar against the currencies of six major US trading partners rose 0.2 percent to 82.362. A falling US dollar would help Brent oil prices leg up back to the $80 mark in the short term.

Tags:  brent, brent oil price, futures, higher, market, oil, oil prices, oil trading, reports, trade, trading