Brent oil trading near $76 after dropping seven percent

Brent crude oil prices are trading slightly higher in Asia on Friday over $76 after a harsh week in the markets sees Brent futures drop over seven percent.

In London, Brent crude oil futures for September 2010 delivery was trading at $76.30, 08.00 GMT on the ICE Futures Exchange, rebounding from a huge overnight drop in floor trade which prompted short covering ahead of the weekend.

“The fall last night was big, and has perhaps prompted traders here to cover shorts. This is not the time for fresh buys, but it would be a little hard to test $75 a barrel.” said Rikio Ishikura, a trader with Newedge Japan.

Brent oil futures have fallen around seven percent this week amid resurgent investor fears that the global economy may not grow in the second half of 2010 as many investors and analysts previously expected.

Oil traders are worried that slower global economic growth will mean consumers will buy less petrol, gas and other energy products, all affecting Brent and WTI oil prices.

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