WTI oil trading back over $81 as stock markets attempt recovery

WTI oil futures open Wednesday’s trading session back over $81 a barrel as oil prices bounce higher after US and Asian stock markets attempt a recovery, however prices remain held back by OPEC lowering demand growth forecasts and the EIA cut its oil price forecasts.

Latest WTI Oil Price

US Light crude oil futures for September 2011 delivery was trading at $81.71 a barrel, 07.10 GMT this morning in electronic trading on the NYMEX. The US contract ended yesterday’s trading session at $81.75.

Stock Markets Recovering?

Asian stock markets jumped Wednesday following a surge on Wall Street triggered by a US Fed pledge to keep interest rates super low for the next two years to help the ailing US economy.

However many analysts believe investors will remain wary about the US central bank’s expectation that the US economy will remain weaker for longer than previously forecast.

World stock markets have been falling since the start of this month on fears of a slide back into recession for the US, as well as the ongoing eurozone debt crisis. WTI oil prices rose to near $82 a barrel, while the dollar slid against the yen and the euro.

OPEC and EIA Forecasts

OPEC cut its crude oil demand forecasts for 2011 and 2012 amid economic worries, the cartel now expects oil demand to increase to 88.1 million barrels per day, down 0.15 million barrels per day from June’s forecast, this year and then to 89.4 million barrels per day, down around 0.1 million barrels per day from June 2012.

Meanwhile, The US EIA said in its Short Term Energy Report that it reduced crude oil price forecast to $95.71 for 2011 and 101 for 2012, down from corresponding forecasts of $98.43 and $102.5 made in June.

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WTI oil trading back over $81 as stock markets attempt recovery