WTI oil price back under $76 on falling stock markets

WTI oil prices are back under $76 a barrel early on Tuesday as stock markets fell in the US and Europe and continued in Asia, ahead of a string of US economic data due out this week.

US Light crude oil futures for November 2010 delivery was trading at $75.79 a barrel, 08.15 GMT on the NYMEX as a stronger US dollar helped push oil futures lower.

European stock markets slipped Tuesday, as investors shrugged off healthy German consumer confidence figures and tracked overseas losses. The US dollar traded at $1.3428 per euro after rising 0.3 percent yesterday. A stronger US dollar limits investor need for assets to hedge against inflation.

“The existing fundamentals could kick oil prices down to half or less of what they are right now. Many traders opt to keep their powder dry until more definitive signals are presented.” Cameron Hanover said in a report.

Weekly WTI Oil Supplies Data

WTI oil futures are lower after four straight days of gains, as analysts forecast an increase in US oil supplies, signaling demand recovery in the US may falter.

“We really haven’t made any headway into stockpiles. Activity hasn’t improved. The crude oil market followed stock markets overnight.” said Ben Westmore, a minerals and energy economist at National Australia Bank.