The price of WTI crude oil fell in trading today as the weekly US oil stocks data out from the EIA showed a surprise gain after the American government reported an unexpected increase in crude supplies and a 7 percent drop in petroleum demand.
Latest WTI Oil Price
US Light crude oil futures for February 2012 delivery was trading at $101.03 a barrel, 15.00 GMT today on the NYMEX.
In midday trading benchmark US Light crude fell 41 cents to $102.81 per barrel in New York.
US Oil Stocks – Weekly Data
The EIA said that oil stocks grew by 2.2 million barrels last week. Analysts expected them to shrink by 450,000 barrels, according to a survey by Platts.
Meanwhile, investors are keeping close watch on the Persian Gulf. Iran has ratcheted up tensions there by threatening to close the Strait of Hormuz, the world’s most important oil transit chokepoint with a third of waterborne oil trade passing through the two mile wide strait each day.
The US has made clear it does not plan to allow Iran to close the transit route.
In a research report Friday, JP Morgan said that other Middle East exporters likely have enought spare oil production capacity to replace Iran’s crude exports should a European Union embargo on Iranian oil move forward.
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WTI crude oil price falls as US oil stocks data shows a surprise gain
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