WTI crude oil trading near $104, market remains volatile

WTI crude oil futures open Wednesday’s trading session near $104 a barrel as the oil market remains volatile to large price swings, with many investors and analysts uncertain about short term oil price direction.

Latest WTI Oil Price

US Light crude oil futures for June 2011 delivery was trading at $104.01 a barrel, 06.05 GMT this morning in electronic trading on the NYMEX. The contract closed off Tuesday’s session at $103.53, up around one percent.

Yesterday, the US API (American Petroleum Institute) said that US crude oil inventories rose 2.9 million barrels last week, more than the increase of 1.6 million barrels predicted by analysts. This data alone would normally have oil prices heading lower.

Meanwhile, the US Dollar Index which tracks the dollar against six major world currencies held firm near the 75 mark. A stronger dollar normally means weakness in oil prices as they become more expensive for buyers using other currencies.

However oil prices for WTI and also Brent oil, the European contract seem to have reversed some of last week’s losses and may well push higher this week.

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WTI crude oil trading near $104, market remains volatile