Crude futures traded around intra-day highs in morning European trading, maintining end of year momentum that saw prices hit 27 month highs, although volumes still remain thin as market participants return following the holiday season.
At 10:05 GMT, February NYMEX WTI traded 47 cents higher at $91.85/b, while February ICE Brent up 66 cents at $95.41/b. The two contracts had hit intra-day highs of $91.98 and $95.52, respectively.
"Energy prices may start out the year on a strong note, but we don't expect it to last too long," said MF Global analyst Tom Pawlicki in a note.
"Last week's trade finished a strong month of December, and some investment may continue to migrate to the market as a result," he added. "However, pressure could be applied from inventories that are likely to begin their seasonal build, Qatar's statement against $100/b oil, and higher oil production in Iraq."
On Friday both front-month WTI and Brent hit their highest levels since early October 2008 with position-squaring given as the most reasonable explanation for the gains.
Europe's major equity markets, meanwhile, were trading higher with the Frankfurt DAX XETRA 30 gaining 108.36 points (1.57%) to 7,022.55 and the Paris CAC 40 85.85 points (2.26%) points better at 3,890.63 -- London was closed for a bank holiday.
The dollar was down against the euro, which was buying $1.3302 compared with $1.3381 late Friday in New York.
In the products market, NYMEX February heating oil was up 2.31 cents at $2.5655/gal, while NYMEX February RBOB had gained 1.22 cents to $2.4425/gal. January ICE gasoil traded $27.25 higher at $789.75/mt.
At 10:05 GMT, February NYMEX WTI traded 47 cents higher at $91.85/b, while February ICE Brent up 66 cents at $95.41/b. The two contracts had hit intra-day highs of $91.98 and $95.52, respectively.
"Energy prices may start out the year on a strong note, but we don't expect it to last too long," said MF Global analyst Tom Pawlicki in a note.
"Last week's trade finished a strong month of December, and some investment may continue to migrate to the market as a result," he added. "However, pressure could be applied from inventories that are likely to begin their seasonal build, Qatar's statement against $100/b oil, and higher oil production in Iraq."
On Friday both front-month WTI and Brent hit their highest levels since early October 2008 with position-squaring given as the most reasonable explanation for the gains.
Europe's major equity markets, meanwhile, were trading higher with the Frankfurt DAX XETRA 30 gaining 108.36 points (1.57%) to 7,022.55 and the Paris CAC 40 85.85 points (2.26%) points better at 3,890.63 -- London was closed for a bank holiday.
The dollar was down against the euro, which was buying $1.3302 compared with $1.3381 late Friday in New York.
In the products market, NYMEX February heating oil was up 2.31 cents at $2.5655/gal, while NYMEX February RBOB had gained 1.22 cents to $2.4425/gal. January ICE gasoil traded $27.25 higher at $789.75/mt.
