Emerging Market Demand to Lift Price of Brent to $115 - Analyst

May 17, 2012 7:25 AM EDT
Ole Hansen, head of commodity strategy at Saxo Bank, thinks the price of Brent crude oil will rise to $115 per barrel in the second half of the year.

"We are still seeing demand rising," said Hansen. "There will constantly be this focus on the limited availability of spare capacity, and that’s really one of the big drivers for markets."

"All the growth in oil demand is coming from China, Brazil, India. Oil prices to a great extent will be determined by the developments in those countries."

Reduced supply out of Iran and Saudi Arabia will also support prices, according to Hansen.

The price of Brent crude has fallen from a high of $128.40 in March and is trading near $109.

U.S Brent can be traded using the ETF (NYSE: BNO) and US WTI light sweet crude is traded using ETFs (NYSE: USO) and (NYSE: OIL).

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