WTI oil price hangs near $88, oil demand in focus

WTI oil prices open today’s trading session hanging near the $91 mark as the latest data on US and European petrol and oil demand are back in focus.

Latest WTI Oil Price

US Light crude oil futures for January 2011 delivery was trading at $87.72 a barrel, 07.30 GMT on the NYMEX.

Oil Demand in the US, Europe

The US API (American Petroleum Institute) said late on Tuesday that crude oil inventories fell 1.4 million barrels last week while analysts surveyed by Platts had forecast a drop of 3 million barrels. Inventories of petrol soared 2.4 million barrels and distillates added 2 million barrels. The US Energy Department’s EIA reports its weekly oil supply data later today.

Meanwhile, the unseasonably cold weather that has dominated Europe for most of early December is increasing oil demand, drawing down inventories.

“In the next few days, temperatures in northwest Europe are expected to return to very cold levels, supporting heating oil and fuel oil demand.” said Christophe Barret, global oil analyst at Credit Agricole SA in London.