WTI oil price trading firm at $98 on OPEC oil output concerns

WTI oil futures open today’s trading session firm over $98 a barrel as the ongoing conflict in Libya prolonged the loss of oil output for OPEC just as 2011 oil demand is set to move higher for the summer period. Latest WTI Oil Price US Light crude oil futures for July 2011 delivery was trading at $98.74 a barrel, 08.15 GMT this morning in electronic trading on the NYMEX. US oil prices rose in New York, trimming the biggest loss in more than a week, as speculation that Libyan supply cuts will reduce OPEC’s spare production capacity. US Oil Inventories Fall Meanwhile, US oil inventories dropped last week, according to a Bloomberg News survey before an Energy Department report tomorrow. Oil Fundamentals Strong “More and more, the market is coming to terms with the fact that spare capacity is indeed going to dwindle with Libyan production being out and the unrest in the Middle East, meaning there could be more risks to the upside for oil prices. The fundamentals are still very strong.” said Xin Yi Chen, a Singapore based analyst at Barclays Capital. The next OPEC meeting is in Vienna on 8th June and the focus will be on OPEC member countries raising their oil output levels to cap rising oil prices.

Original post: 
WTI oil price trading firm at $98 on OPEC oil output concerns