WTI oil opens trading at $113, crude market remains volatile

11 April 2011 11 April 2011

BonTrade

WTI oil futures open Monday’s trading session at $113 a barrel as the crude oil market remains volatile, mainly due to developments in Libya, Egypt and unrest in Middle East countries.

Latest WTI Oil Price

US Light crude oil futures for May 2011 delivery was trading at $113.01 a barrel, 07.00 GMT in electronic trading this morning on the NYMEX. The US WTI NYMEX oil futures contract remains at highs not seen since the summer of 2008.

Libya Peace Deal Discussed

Leaders from the African Union (AU) met Col Muammar Gaddafi, in Tripoli on Sunday and have apparently agreed the basis of a much needed peace deal in Libya. An AU team is now going on to the eastern rebel stronghold of Benghazi to discuss the deal further, however any deal designed to keep Colonel Gaddafi or his sons in place would not be acceptable to the Libyan rebel forces.

Egypt Protests

Meanwhile, Egyptian soldiers attacked protesters calling for an investigation of former President Hosni Mubarak for embezzlement, killing at least one person and injuring 71 others. Several hundred protesters remained barricaded at Cairo’s Tahrir Square.

“Fresh headlines over the weekend could portend another difficult week for oil bears. Gaza and Israel violence along with new protests in Tahrir Square against the military could incite another buying frenzy in the market.” energy consultant The Schork Group said.

US Dollar and Oil Prices

Investors are also watching closely the currency markets as the US dollar fell nearly one percent in currency market trading last Friday. A weaker US dollar makes both WTI and Brent crude oil cheaper for investors to buy using other currencies.