WTI oil trading near $112, prices remain in bullish mode

WTI oil futures open Friday’s trading session around $112 a barrel as both Brent and US oil prices remain in bullish mode amid continued unrest in the Middle East and a weak US dollar.

Latest WTI Oil Price

US Light crude oil futures for June 2011 delivery was trading at $112.46 a barrel, 06.40 GMT this morning in electronic trading on the NYMEX.

WTI Long Positions Remain High

Net long positions in WTI oil futures, or bets that WTI oil prices will continue to rise, rose to a record 311,632 positions in the first week of March 2011, while the figures for 19th April showed net long positions at 289,916 according to the US CFTC (Commodity Futures Trading Commission).

Oil traders and analysts watch this weekly data to get a sense of the institutional support for oil prices.

However, basic supply and demand factors, together with continued unrest in the Middle East and North Africa have accounted for much of WTI oil gains in 2011.

US Dollar Remains Weak

The US dollar, a key factor in driving oil prices remains weak and under pressure on currency markets. The ICE US Dollar Index, which tracks the US dollar against six major world currencies fell to the lowest level since 31st July 2008, dropped 0.5 percent to 73.139, its eighth consecutive daily decline. Earlier the index feel as low as 72.872.

Weakness in the US dollar generally boosts the appeal of oil futures and other commodities (including gold and silver) as an alternative investment.

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WTI oil trading near $112, prices remain in bullish mode