Brent crude oil price trading above $72 after US speech

Brent crude oil price rose above $72 a barrel in trading on Thursday, paring some of the previous day’s decline, after a speech by US President Barack Obama eased market worries over plans to limit bank risk taking.

“Obama’s state of the union address focused on matters other than his Volcker plan announced last week for banks, which has helped prices recover somewhat today,” said oil brokers PVM in a report.

“Yesterday’s closes saw breaches of important correction point supports, a sign that this price trend could be here to stay. Today’s rally may be more of a correction than a sign that we’ve bottomed out.”

Oil price analysts said that the downtrend may not be complete after crude oil prices closed below short term support on Wednesday. Brent oil futures for March delivery was trading up 57 cents at $72.81 a
barrel at 1125 GMT, the March/April Brent spread was 64 cents and Brent’s discount to March US Light crude oil futures was $1.40 per barrel, almost unchanged. Brent crude oil support level is currently at $71 a barrel, resistance at $75.00.

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