WTI oil price back near $100 as US debt talks drag on

WTI oil prices open Tuesday’s trading session back near $100 a barrel as talks among US leaders made little progress ahead of next week’s deadline to raise the US government’s debt limit, keeping markets on edge.

Latest WTI Oil Price

US Light crude oil futures for September 2011 delivery was trading at $99.57 a barrel, 07.25 GMT this morning in electronic trading on the NYMEX.

Investor Concerns

Investor concern has grown this week about the potential economic damage that could be caused by not raising the debt limit, however traders are still factoring in expectations that an agreement will be reached before the deadline passes.

“The continued lack of progress in negotiations has been absorbed surprisingly well by the equities and oil markets. We still feel that a breakout of the recent trading range will eventually develop to the upside, but such a development will likely demand some form of agreement regarding the debt ceiling.” according to Ritterbusch and Associates.

“It’s going to be tough over these next few days as the government plays the default card. One simple announcement that things are resolved will snap the markets back.” according to a report by Blue Ocean Brokerage.

US Oil Weekly Data

Traders and investors will also be keeping an eye on the weekly US oil inventory data due out later today and tomorrow to get a better picture of US oil demand which also affects the price of WTI oil.

The US Energy Department report will probably show US crude inventories declined 1.75 million barrels from 351.7 million last week, according to the latest estimates.

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WTI oil price back near $100 as US debt talks drag on