WTI oil trading near $89 whilst US inventories climb higher

WTI oil futures open Wednesday’s trading session higher, near $89 a barrel whilst the latest weekly US oil inventory figures showed that American crude oil supplies unexpectedly jumped last week, a sign demand may be weakening.

Latest WTI Oil Price

US Light crude oil futures for October 2011 delivery was trading at $88.73 a barrel, 08.20 GMT this morning in electronic trading on the NYMEX.

US Oil Inventories

The US API (American Petroleum Institute) said late on Tuesday that US crude oil inventories rose 5.1 million barrels last week while analysts had predicted a drop of 1.2 million barrels.

“Inventories continue to build, which gives us the real state of play in the market. I don’t think prices will go higher, I think we’re in a range and we’re just testing the top side of that.” said Jonathan Barratt, a managing director of Commodity Broking Services, Sydney.

US crude oil supplies rose to 352 million and are currently about 3.8 percent above the 5 year average.

Go here to see the original: 
WTI oil trading near $89 whilst US inventories climb higher