WTI oil price trading at $81 as investors turn bullish

9 August 2010 9 August 2010

BonTrade

WTI oil prices are back over the $81 mark in early trading in Asia as stock markets move higher and investors turn bullish on oil futures as the dollar slips lower.

US Light crude oil futures for September 2010 delivery was trading at $81.25, 07.30 GMT on the NYMEX.

In a sign that most investors remain bullish on oil prices, open interest positions remained heavy at the September $85, $90 and $95 call options on Friday, while money managers also increased net long crude oil positions on the NYMEX in the week through August 3rd.

“The market is pretty directionless at the moment and oil looks pretty well priced” said Ben Westmore, a commodities analyst.

“Investors expect there will be some indication of additional actions to prop up the US,” said Tomokazu Amano, a Futures analyst at Mitsubishi Corporation, noting that foreign exchange and equity movements were likely to set the tone for oil prices this week.