WTI oil trading firm at $86, awaits US oil supply data

26 January 2011 26 January 2011

BonTrade

WTI oil prices open today’s trading session firm at $86 after another decline on Tuesday saw both oil prices and other commodities experience a broad sell off.

Latest WTI Oil Price

US Light crude oil futures for March 2011 delivery was trading at $86.51 a barrel, 08.25 GMT this morning on the NYMEX.

Meanwhile in other commodity markets, gold prices dropped to an intraday low of $1,322.70 an ounce, the lowest since October 2010.

US Oil Supply Data

The US Department of Energy is scheduled to report oil and fuel inventory levels at 10.30 EST today. The American Petroleum Institute said late on Tuesday that crude oil inventories rose 2.1 million barrels for the week ended 21st January.

WTI oil prices have fallen around seven percent since 12th January, tracking the decline in gold prices, partly because of an upswing in longer term US interest rates, which has reduced the attractiveness of gold and oil.

Oil Trading Data

March $70 puts were the most active options in electronic trading on the NYMEX, with 11,380 lots changing hands. They rose 6 cents to 9 cents a barrel.

March $75 puts, the next most active contract, increased 12 cents to 23 cents a barrel with 8,495 contracts trading. One contract is for 1,000 barrels of oil. The six most actively traded options were puts, according to the exchange data.