Brent oil price trading back over $78 on higher markets

ICE Brent oil price rose in early trading on Monday above $78 a barrel in Asia as crude oil traders followed regional Asian stock markets higher. On the ICE Futures Exchange, Brent crude oil is trading up 54 cents at $78.13 in light trading.

Oil traders, who often look to equities as a measure of overall investor sentiment, were cheered by a jump in all the major Asian stock indexes Monday amid recent signs that Asian manufacturing is recovering from the 2009 slump.

But in the short term, crude oil prices may have limited upside after the recent rally pushed oil futures near the top of its current range, said Mike Sander at Sander Capital Advisors. “We are still near the top of the current channel at $80, with the bottom near $70,” he said.

“As far as this week goes, I would be leaning more towards bearish for the price of oil. The upside potential is very slim,” he said.

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