Brent crude rises towards six month high

A combination of global factors have seen the price of Brent crude futures rise for seven consecutive days, taking them to over US$ 117/bbl.

Hopes of success in the negotiations over the eurozone debt crisis helped keep up prices, as have continuing supply concerns stemming from the international debate over Iran’s nuclear programme.

The recent cold weather that has hit most of Europe has also been a driving factor behind rising prices, as some energy providers have had to fire up oil-fuelled power stations in order to meet energy demands.

Analysts are also citing continuing economic recovery in the United States, more favorable economic conditions in China, as well as supply concerns caused by the disruption in Syria.

Despite the recent price increases, and the numerous factors behind them, some analysts have predicted that it is unlikely that Brent futures will reach more than US$ 120/bbl, partly due to the fact that milder weather has been forecast for Europe in the near future.

Published on 09/02/2012

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