ICE Brent oil price trading around $77 on Tuesday, after 2009 high

ICE Brent crude oil price is currently trading around the $77 to $78 dollar mark on Tuesday afternoon, earlier today Brent prices hit another 2009 year high.

The US dollar hit a 14 month low against a basket of currencies on Tuesday. A weak dollar makes dollar denominated commodities such as oil cheaper for holders of other currencies. The Brent oil price has surged by nearly $10 since the start of October.

“We see little support for the rally, which is now eight days old, and think that at some point OPEC spare capacity of about 6 million barrels and massive on and offshore stocks will trigger a correction phase,” said JBC Energy analyst David Wech in a research note.

OPEC Secretary General Abdullah al-Badri said on Tuesday that oil prices at $80 a barrel were “a bit high”, but they had helped the group revive major upstream investment projects to create a larger supply cushion.

“There was not any strong fundamental factor for the move from $75 to $80. Now the market is looking for a fundamental story and OPEC is starting to make some noise,” said analyst Olivier Jakob of Petromatrix.

Tags:  2009, brent oil price