US WTI oil futures open Tuesday’s trading session back under $98 a barrel as traders took profits from a rally in oil prices the day before, while European debt worries continued to spook the markets.
Latest WTI Oil Price
US Light crude oil futures for January 2012 delivery was trading at $97.79 a barrel, 08.15 GMT this morning in electronic trading on the NYMEX.
Profit Taking – Oil Heading Lower?
Oil prices moved higher on Monday by rumours of an IMF bailout of heavily indebted Italy, which were later quashed by a denial from the organisation.
“Oil prices were boosted yesterday by the euro debt hopes and strong US consumer data over the Thanksgiving holidays, so the market this morning decided to take some profits.” said Victor Shum, senior principal of Purvin and Gertz energy consultants, Singapore.
However, Shum warned that markets were likely to fall in the coming days as European debt worries continued to haunt the markets.
“There are still persistent concerns about the eurozone debt situation and so the sentiment is that oil pricing got a bit too strong.” he stated.
“We’ve had more positioning in oil recently with the speculators coming in on the long side. When we get moves as we’ve seen overnight, the short-term interest is simply taking profit.” said Michael McCarthy, a chief market strategist at CMC Markets Asia Pacific in Sydney who sees technical resistance for US WTI oil futures at $102 a barrel.
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WTI crude oil trading under $98 a barrel on profit taking
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