WTI oil futures open Tuesday’s trading session at $98 a barrel ahead of the latest crude oil stocks data from America which again is expected to remain tight, fuelling recent oil price gains.
Latest WTI Oil Price
US Light crude oil futures for December 2011 delivery was trading at $97.75 a barrel, 07.50 GMT this morning in electronic trading on the NYMEX.
Falling Crude Oil Inventories
Falling crude oil inventories in the US and Europe suggest that oil supplies aren’t keeping up with demand. Analysts are predicting that crude stocks fell 1.5 million barrels last week.
The US API (American Petroleum Institute) reports its weekly supply figures later today and the US EIA (Energy Department’s Energy Information Administration) announces its data tomorrow.
“Unexpectedly resilient economic data has exacerbated the tightness in physical commodities. We maintain our view that global growth will provide enough support to demand to drive key commodity prices higher over the next 12 months.” Goldman Sachs said in a report.
Goldman recommended investors buy the December 2012 futures contract.
However WTI oil futures staged an abrupt shift in the recent trading pattern, which analysts attributed to easing concerns over near term oil supplies.
December US WTI futures dropped below the January delivery contract for the first time since October, and returned to the market structure that had been in place at the front end of the market for the past three years.
Andy Lipow, president of Lipow Oil Associates, said sentiment over the same issues that drove the oil market higher in recent weeks, including the apparent resolution of the European debt crisis and supply demand fundamentals in the US turned from positive to negative.
Read the original:
WTI oil trading at $98 ahead of weekly US crude stocks data
Leave a Reply
You must be logged in to post a comment.