WTI oil trading at $112 ahead of weekly US inventory data

WTI oil futures open Wednesday’s trading session flat near $112 a barrel as eyes turn to the latest US oil inventory data due out later today from the US Energy Department, which could have oil prices on a back footing.

Latest WTI Oil Price

US Light crude oil futures for June 2011 delivery was trading at $112.28, 05.40 GMT this morning in electronic trading on the NYMEX after closing yesterday back under $112.

Crude oil inventories in America probably increased last week against a drop in gasoline supplies, a survey showed before the US Energy Department report due out later on Wednesday.

Crude oil stockpiles climbed 1.7 million barrels from 357 million in the week ended 22nd April, according to the analysts polled by Bloomberg, while gasoline stockpiles are expected to have decreased 1 million barrels from 208 million.

The US API (American Petroleum Institute) said that American gasoline inventories fell for a 10th week, the longest losing streak since August 1994.

Can Oil Trade Much Higher?

“People are concerned about high oil prices so I don’t think it’s very easy for oil to go much higher. There’s still a lot of inventory of crude oil in the US and all over the world.” said Ken Hasegawa, a commodity derivative sales manager at Newedge Group, Tokyo.

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WTI oil trading at $112 ahead of weekly US inventory data