WTI oil trading firm over $98 after EIA oil inventory data

17 March 2011 17 March 2011

BonTrade

WTI oil futures open Thursday’s trading session firm over $98 a barrel after the latest EIA data showed that US crude oil inventories rose less than expected last week.

Latest WTI Oil Price

US Light crude oil futures for April 2011 delivery was trading at $98.52 a barrel, 07.00 GMT this morning on the NYMEX.

The US EIA (Energy Information Administration) said in its weekly report that American crude oil inventories increased by 1.7 million barrels, analysts had expected inventories to rise by 1.8 million barrels.

According to the data, total US crude oil inventories for the week ending 11th March stood at 350.6 million barrels, remaining above the upper limit of the average range for this time of year.

Oil Markets and Japan

The last week has seen stock markets and oil prices tip lower, mainly on concerns over the Japanese economy. Oil markets are watching developments in Japan closely as the country is the world’s third largest oil user after the US and China.

Oil Prices Turning Positive

“The oil market’s reaction to the Japanese earthquake is overdone, in our view, given the potential increases in oil demand resulting from the permanent loss in nuclear capacity far outstripping the short term negative impact on demand.” said Amrita Sen, an oil analyst at Barclays Capital.

WTI’s recent fall back under $100 a barrel may be short lived.