WTI oil price back at $90 on US crude oil supply plunge

WTI oil prices open Wednesday’s trading session back at $90 per barrel as the latest crude oil supply figures out of the US suggest a big plunge in oil inventory levels.

Latest WTI Oil Price

US Light crude oil futures for Febraury 2011 delivery was trading at $90.10 a barrel, 05.15 GMT this morning on the NYMEX.

US API Report Grim Reading

The US API (American Petroleum Institute) reported yesterday that US crude oil inventories fell 5.8 million barrels during the week ended 17th December 2010. Investors and traders are still awaiting the more closely watched inventory report from the US Department of Energy, due out today at 10.30 EST, analysts expect crude oil stockpiles to fall 2.3 million barrels, adding fuel to an already bullish crude oil market.

Oil Trading – Light Volumes

Crude oil trading was volatile as light volume helped magnify the impact of smaller oil trades. Many traders remain cautious to place larger bets ahead of the 2010 Christmas holidays, and oil prices have traded within a tight range for much of this month.

“As trading volumes get thinner, we may well see erratic and rather incomprehensible price movements at times. The cold winter weather can only partly explain the rise in crude oil prices.” Commerzbank analyst Carsten Fritsch noted.