What's Moving the Oil Markets?

What's Moving the Oil Markets?

•IPE Brent futures in London rose slightly Friday as market players looked to consolidate positions ahead of the long holiday weekend, traders said. At 1058 London time, July Brent futures contract was trading at $71.16/barrel, up 45 cents. "The market started covering positions yesterday evening where prices rose around $1 in the last hour or so of trading on ICE. We're seeing some more this morning but ultimately it is very quiet," one broker said.

•On Thursday less than 100,000 lots were traded on the July IPE Brent contract, due to there being a public holiday in most of Europe. "I can't see things changing. There are still people away and the current $71/barrel level is comfortable. Nobody is really thinking it should be much higher or lower and it will probably hold steady for the rest of the day," a trader said.

•However, a Barclays Capital report said that prices could move beyond the $75 mark. "With the start of the summer driving season now imminent, continued geopolitical tensions and forecasts for an above normal hurricane season, we continue to see strong fundamental grounds for current prices and the trend as pointing to an eventual test higher above the current $65-75/barrel band."

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