WTI oil trading over $81 on US crude oil inventory drop

WTI oil futures are back over $81 a barrel in early trading today as the weekly US crude oil inventory report showed a drop in US crude oil and petrol stockpiles, pushing oil markets higher.

Latest WTI Oil Price

US Light crude oil futures for January 2011 delivery was trading at $81.47 a barrel, 07.45 GMT on the NYMEX, after closing yesterday’s trading session at $80.42.

US Crude Oil Inventories see Big Drop

US crude oil inventories fell by 7.3 million barrels in the week to 12th November, the US Department of Energy revealed yesterday, the biggest weekly drop for 15 months and much weaker than the 100,000 barrel decline expected by the market.

Petrol reserves also fell by 2.7 million barrels, analysts had predicted a smaller drop of only 600,000 barrels. However, US refiners tend to cut inventories towards the end of each year to save on taxes, which may explain part of the declines.

US Dollar, Markets Driving Oil Prices

The value of the US dollar and stock market movements continue to be the main driver of oil prices for the moment. The dollar was weaker overnight after the release of data showing US weak consumer data and home purchases plunged to a near record low last month.

Without signs that the US economy is on the road to a more rapid recovery, there is weakness in the dollar in currency trading.

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WTI oil trading over $81 on US crude oil inventory drop