WTI oil price at $79, looks to recovery signs and markets

WTI oil prices are trading at the $79 mark on Monday afternoon as future prices may come from recovery signs in the US and Europe as well as activity in global stock markets.

US Light crude oil futures for September 2010 delivery was at $78.90 a barrel, 15.45 GMT on the NYMEX in light trading.

Oil prices this month have been generally tracking the performance of equities markets, which in turn have been taking cues from macroeconomic signals which market players lack consensus on.

With mixed options, “there is no reason to buy or sell (oil)” now, said Ryuichi Sato at Mizuho Securities, adding oil may fluctuate between $75 and $80 a barrel this week.

Meanwhile, European markets failed to provide support to oil prices, falling slightly because of growing skepticism that stress tests on European banks, published on Friday, were not strict enough.

In a sign of bullishness on crude oil prices, open interest positions increased on September $85 and $90 call options on Friday compared with a week before, as oil prices rose to near $80 a barrel before ending the session slightly lower.