WTI oil trading near $88 ahead of weekly EIA oil supply data

25 January 2011 25 January 2011

BonTrade

WTI oil prices open today’s trading session around $88 a barrel as expectations the US EIA (Energy Information Administration) will report rising crude oil supplies in it’s oil inventory report, due out later this week.

Latest WTI Oil Price

US Light crude oil futures for March 2011 delivery was trading at $87.62 a barrel, 08.00 GMT this morning on the ICE Futures Exchange.

Meanwhile, the ICE US Dollar Index, which tracks the US dollar against six major world currencies was at 78.04 this morning, and slipped below 78.0 yesterday. A weaker US dollar usually boosts oil prices.

Weekly US Oil Supply Data

Crude oil inventories in the US are expected to rise by 400,000 barrels this week, according to the average estimate of six analysts polled by Dow Jones Newswires.

Price Spread WTI and Brent

The widening price spread between WTI and Brent may have prompted some traders to reduce their position in WTI in favor of Brent barrels.

Brent oil futures are currently trading at around an $8 premium to the US counterpart, WTI oil futures.