Brent oil trading higher, Gulf spill not affecting price, yet..

Brent crude oil prices are trading higher in Tuesday’s session, near $73 as markets move higher and work continues on the BP Gulf oil relief well, but is the Gulf oil spill crisis affecting oil prices?

In London, Brent crude oil futures for August 2010 delivery were at $72.55 a barrel, 15.00 GMT on the ICE Futures Exchange.

Oil Prices and the BP Oil Spill Relation

It seems that in the short term, oil prices have not been affected by the BP oil spill crisis, however that may change, depending on the success or failure of the oil relief well being drilled to plug the BP Gulf oil spill.

A recent Deutsche Bank analysis raised its long term price of crude oil by $5 to $10 a barrel, citing tighter global regulation pushing up oil exploration and development costs, an after effect of the Gulf spill disaster.

Meanwhile, BP insisted today that it can cope with soaring oil spill costs without asking shareholders for cash, amid reports that the UK government is working on a crisis plan if the BP goes bankrupt by the oil spill disaster.

“Our position on contingency plans with respect to individual companies is if they are happening we would never comment on them” said the UK’s Prime Minister’s official spokesman.

Both tightened global regulation in the oil market, together with a failure to plug the Gulf oil spill would indeed see oil prices move higher in future.

Tags:  BP, brent, brent oil price, gulf, oil, oil prices, oil relief well, prices, spill, trading