Brent oil trading near $75 and prices could head lower

Brent oil futures are trading back near the $75 mark in Asia on Friday as analysts and investors predict that oil prices could head lower in the short term at least.

In London, Brent crude oil futures for September 2010 delivery was at $75.40, 07.30 GMT on the ICE Futures Exchange and has lost around eight percent in value in the last two weeks.

Gene McGillian, an analyst at Tradition Energy in Stamford expects oil prices to move down to the low $70s for the first time since early June 2010, after the early September US Labor Day holiday, which is regarded as the end of the peak summer gasoline demand season.

A More Bearish View of Oil Prices

Suprisingly, company Cameron Hanover who are a specialist firm in the management of Energy price risk said in a report that it views oil prices should be substantially lower, below $35 and potentially as low as $10 a barrel based on the weak state of demand.

However, the view of current oil prices were summed up “Prices are near $75 instead because investors are pricing oil more in terms of gold than in terms of the market’s history, the euro, the dollar, or supply and demand.”

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