WTI oil price may drop lower to test $70 mark this week

WTI oil futures are trading flat on Monday and may well test the $70 mark again in the short term at least, as uncertain markets and grim oil demand weigh on the price of crude. US Light crude oil futures for September 2010 delivery was at $73.76 a barrel, 08.15 GMT on the NYMEX, after initially gaining, then selling off again. Currently, crude oil inventories around the world are close to record levels, with the IEA reporting they are over 61 days of demand. Higher or Lower Oil Prices for 2010? But the risk or reward ratio for a bet on oil prices at $90 + a barrel in Q4 of 2010 is starting to look pretty thin. Crude oil prices peaked at $83 a barrel in early August and in spite of another bullish report last Monday, were down $9 (or eleven percent) by the end of last week. So the risk of an oil price collapse to $70 or lower is increasing and if that happens, then clearly OPEC would move to quickly cut oil production again. OPEC Basket Oil Prices are Lower OPEC has pegged the value of its reference basket of 12 crude oils at $73.03 a barrel last Thursday, this was before the drop off at the end of last week. OPEC devised a new basket pricing oil after OPEC member countries complained that the old basket overstated the value of the group’s output. WTI oil trading above $75 amid higher US oil stocks Stock markets rally, WTI oil futures trade at $74 mark WTI oil trading at $73, splits from tracking stock markets WTI oil price closes under $74 a barrel on higher dollar WTI oil price heads lower on stock markets, US dollar WTI oil price nears the $76 mark, awaits US jobs data Crude oil prices hammered lower as stock markets tumble WTI oil price trading firm at $82 ahead of US jobs data WTI oil price trading back near $77 on US supply jump WTI oil price ends week over $76, tracks stock markets WTI oil trading over $73 as stock markets lift oil prices WTI oil price trading near $73, time to get long on oil? Oil prices trading near $70 as global stock markets slump WTI oil price levels around $72 mark after a steep fall WTI oil prices trading firmer on a weakening US dollar WTI oil price back near $72 amid a higher US dollar Oil prices fell $5 this week, fears of weak oil demand grow WTI oil price trades down to $78 as US dollar makes gains WTI oil price dips under $80 after Fed announces QE lite WTI oil price trading at $81 as investors turn bullish

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WTI oil price may drop lower to test $70 mark this week