WTI oil trading firm at $102, US jobs data supports prices

4 March 2011 4 March 2011

BonTrade

WTI oil prices open today’s trading session firm over $102 a barrel as American investors bet on positive US employment data, due out later today, which may show that the US economy is making some progress for recovery.

Latest WTI Oil Price

US Light crude oil futures for April 2011 delivery was trading at $102.40 a barrel, 07.40 GMT this morning on the NYMEX. WTI oil traded through $100 a barrel earlier this week, the first time since the summer of 2008.

Market optimism increased ahead of the release after it was shown applications for US unemployment benefits fell by 20,000 to a seasonally adjusted 368,000, the third decline in the past four weeks, the US Labour Department said.

WTI and Brent – Spread

Historically, NYMEX WTI crude oil futures trade at a premium compared to foreign oil priced on the ICE Brent market. But recently something new has happened, domestic WTI crude oil priced at Cushing is selling for $15 less per barrel than European ICE Brent crude oil futures.

WTI oil seems to be getting left behind as the European bencmark, Brent crude is now viewed by many as the real price indicator for oil futures around the world.