WTI oil price back under $75 as US supplies grow

WTI oil futures are back below the $75 price level on Thursday morning as rising crude oil supplies in the US suggest demand remains weak.

US Light crude oil futures for November 2010 delivery was trading at $74.88 a barrel, 07.45 GMT on the NYMEX after closing Wednesday’s session at $74.70.

“We continue to increase the amount of oil we have in storage against the amount held two years ago. We still have way too much oil, and demand is not trending higher in any meaningful way.” Cameron Hanover said.

“It looks like October and November are going to be warmer than normal which is going to delay the start of the season where people use heating oil to heat their homes.” Tradition Energy analyst Addison Armstrong said.

US WTI oil prices have remained around the $75 level for most of 2010 despite strong crude oil demand in emerging economies, such as China, as growing oil supplies in the US weigh on prices.