WTI oil price trades higher at $103 amid higher US oil inventories

The price of US WTI crude oil opens Thursday’s trading session back at $103 a barrel after closing 1.4 percent higher yesterday despite the latest weekly US government report that showed US crude oil inventories rose slightly more than expectations.

Latest WTI Oil Price

US Light crude oil futures for May 2012 delivery was trading at $103.13 a barrel, 07.11 GMT today in electronic trading on the NYMEX.

US Oil Inventories

The US EIA (Energy Information Administration) said US crude oil stocks rose 2.8 million barrels in the week ended April 6. Analysts ha forecast a 2.2 million-barrel growth in supplies.

Data from the US API (American Petroleum Institute) released on Tuesday reflected a 6.6 million barrel build, which had traders anticipating a potentially bearish turn in the market.

“It’s more or less a bullish number when you think about that. We’re seeing a lack of imports here.” said Carl Larry, president of advisory firm Oil Outlooks and Opinions.

Other factors have been weighing on the market, from renewed worries about European sovereign debt to a weak jobs recovery in the US and an economic slowdown in China that would reduce oil demand in the world’s second largest consuming nation.

Sub $100 Oil Prices Overrated

WTI oil prices have dropped almost $8 from late February, from almost $110 a barrel to around $102 on Tuesday, however the hopes for a continued drop in oil prices could be overrated.

A recent report has Iranian President Ahmedinijad claiming his country can easily withstand a total boycott of Iranian oil exports for more than two years if necessary, and then there is the Iran oil boycott in place to start in July, taking more than 2 million barrels a day of supply off the global market.

“At the end of the day, Iran is also worried about its exports, about being able to do business with other countries. They need to maintain their budget, otherwise they cannot survive.” said Tetsu Emori, a Tokyo based commodities fund manager at Astmax Investments.

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WTI oil price trades higher at $103 amid higher US oil inventories