July WTI Light oil price trading near $73 on US data

20 May 2010 20 May 2010

BonTrade

WTI Light oil prices for July 2010 delivery are trading near the $73 mark on Thursday as oil traders mulled over the latest US oil supply data from the EIA.

The June for WTI oil futures contract expires later today and much of the trading volume has now shifted to the July contract for Light crude oil futures , which rose 36 cents to $72.93 on the NYMEX.

“This slow demand growth further supports our view that a significant increase in gasoline consumption will likely await a decline in the level of unemployment,” Ritterbusch and Associates said in a report. “The overall tone of the oil complex remains quite weak.”

Thursday marks the expiration date of the June futures contract, and investors often reverse their positions a day ahead of an expiration date, said Phil Flynn, a senior market analyst with PFG Best.

US crude oil stockpiles increased by 200,000 barrels from the previous week. Analysts surveyed by research firm Platts, were expecting crude oil stocks to be up about 950,000 barrels.