WTI oil trading over $85, world crude oil supply in focus

30 November 2010 30 November 2010

BonTrade

WTI oil futures open Tuesday’s trading session firm over $85 as hopes for better consumer demand lifted oil prices yesterday, while traders looked to US supply reports for clues about the strength of world demand for crude.

Latest WTI Oil Price

US Light crude oil futures for January 2011 delivery was trading at $85.41, 07.15 GMT this morning on the NYMEX.

Traders are looking ahead to a week heavy with economic data out of the US. The Institute for Supply Management is due to release its monthly manufacturing report on Wednesday, followed by key data on November nonfarm payrolls due Friday.

US crude inventories likely fell 1.5 million barrels last week, according to analysts. The US API (American Petroleum Institute) plans to announce its inventory numbers later Tuesday while the US EIA reports its weekly crude oil supply data on Wednesday.

“We still see further upside for oil prices as a result of extended US liquidity, strong emerging market demand, and a nascent fall in US inventories albeit from high levels.” Citigroup said in a report.

Citi said it expects oil prices to average $88 during the next three months and $93 between six and 12 months from now.

Oil Trading Volumes Lower

On Monday oil trading volumes were 496,077 lots with less than an hour of trading remaining, 20 percent below the 30 day average.