Oil prices make correction lower on profit taking

5 January 2011 5 January 2011

BonTrade

Oil prices open Wednesday’s trading session lower as traders and investors take profits and await the latest EIA oil supply data out of the US to help gauge short term oil price direction.

Latest Oil Prices

In London, Brent crude oil futures for February 2011 delivery was trading at $93.09 a barrel 08.45 GMT on the ICE Futures Exchange.

Meanwhile, US Light crude oil futures for February 2011 delivery was at $88.70 a barrel on the NYMEX.

Oil Futures Dip on Profit Taking

“There’s a light correction from profit taking. The big increase in gasoline stocks was partly because of heavy snow last week.” said Ken Hasegawa, a Tokyo based commodity derivatives sales manager at Newedge, a brokerage.

Some analysts predict slower global economic growth and high inventories will keep crude from shooting much above $100 this year.

US crude supplies have fallen for five weeks, but are still above levels from the previous year. The US EIA (Energy Information Administration) reports its weekly oil supply data later today.