Brent North Sea crude oil edges towards $100 a barrel

BRENT North Sea crude oil climbed to almost $100 a barrel in afternoon trading yesterday as oil prices continually broke out of their previous ranges to trade above moving averages.

Brent North Sea crude for delivery in February climbed as high as $98.67 (€75.90) per barrel in afternoon deals, after peaking on Wednesday at $98.85 — which was the highest level since early October 2008. The contract later stood at $98.45, up 33 cents from the closing level on Wednesday.

Glen Ward, head of retail derivatives at London Capital Group Holdings Plc, said: “I cannot see any reason why we will not see $100. We have positive moving averages with the price action above them all, and they are all pointing up.

“We are constantly seeing high peaks and higher troughs — in effect a decent bullish trend.”

Prices are now above the nine-day, 14-day and 40-day moving averages, Ward said.

The market also gained support from data showing crude oil stockpiles fell more than expected in the United States, the world’s biggest oil-consuming nation.

Some traders believe that oil could soon strike $100 per barrel for the first time since October 2008.