WTI oil futures trading over $89, prices remain bullish

WTI oil futures open today’s trading session over $89 after marking its highest close in more than two years yesterday, with traders and investors remaining bullish for prices in the closing weeks of 2010.

Latest WTI Oil Price

US Light crude oil futures for January 2011 delivery was trading at $89.24 a barrel, 07.00 GMT this morning on the NYMEX, fluctuating between positive and negative territory in trading yesterday, hitting a fresh 26 month high of $89.76 a barrel before pulling back.

“The bulls are still in control of this thing. The market hasn’t had any real downside follow through.” said Tom Bentz, analyst with BNP Paribas in New York.

Traders will also be looking at the US Department of Energy’s weekly report on crude oil stockpiles due out tomorrow. Analysts expect crude oil inventories will have a 1.5 million barrel drawdown for the week ending 3rd December, which may offer an additional support for oil prices.

Goldman Sachs and $110 Oil

“Looking toward 2012, the stage is set for a return to a structural bull market in oil, with a new 2012 WTI price forecast of $110 a barrel.” said Goldman Sachs analysts last week.

Goldman are also upbeat about the outlook for 2011, reiterating their $100 a barrel average 2011 price forecast for WTI, based on the expected draw on OPEC spare capacity next year.