Brent crude oil futures open Thursday’s trading session back near $113 a barrel as oil traders an investors buy back into oil futures after last week’s IEA comments fail to stop oil prices from declining much further.
Latest Brent Oil Price
In London, Brent crude oil futures for August 2011 delivery was trading at $112.63 a barrel on the ICE Futures Exchange. The contract closed off yesterday’s trading session up 3.3 percent.
“With European refining margins recovering very strongly during the last few days, it’s likely the Brent structure will strengthen again as refiners are enticed back to the market to buy crude.” said James Zhang, oil analyst at Standard Bank.
Sales of emergency oil stocks began in Europe on Wednesday, as part of a plan by consuming nations to cool prices, but traders complained about confusing signals from different countries and industry lobbies warning of price spikes.
“The market is still assessing the release of emergency stocks by the IEA. The IEA has shown that it is ready to step in to meet coverage.” said Ben Westmore, commodities economist at the National Australia Bank.
Meanwhile, a weaker US dollar once again helped support higher oil prices. The ICE US Dollar Index , which tracks the US dollar against six major world currencies, fell 0.54 percent as Greece moved a step closer to securing international aid.