WTI oil futures open Wednesday’s trading session back at $104 a barrel amid the latest report showed US crude supplies jumped more than expected for a fourth week, suggesting that crude oil demand in America remains weak.
Latest WTI Oil Price
US Light crude oil futures for May 2012 delivery was trading at $104.23 a barrel, 08.01 GMT today in electronic trading on the NYMEX.
Weekly US API Figures
The US API (American Petroleum Institute) said late Tuesday that US crude oil inventories rose 3.4 million barrels last week while analysts surveyed had predicted an increase of 400,000 barrels.
Inventories of gasoline fell 2.6 million barrels last week while distillates tumbled 2.4 million barrels, the API said. The Energy Department’s Energy Information Administration reports its weekly supply data later Wednesday.
“We look for a sizable US crude supply surplus during the coming months to take some steam out of crude strength. We still see fresh lows to below the $100 mark by next week.” energy trader and consultant Ritterbusch and Associates said in a report.
Seaway Pipeline Reversal
US WTI crude futures settled up 1.2 percent yesterday as investors looked to a coming pipeline reversal that is expected to bring US oil in line with global prices.
The Seaway pipeline reversal, designed to help ease a supply glut in Cushing, Okla., that has been depressing US oil prices, will begin delivering crude to the Gulf Coast refinery belt in a month, or two weeks earlier than expected.
Traders said the move will unlock the value of the landlocked US benchmark, by making the crude available to Gulf Coast refineries. At the same time, the move cuts the value of the European benchmark, Brent crude, as competitive crudes become more plentiful in the region.
“This is all about Seaway. People are buying WTI and selling Brent.” said Tom Bentz, director at BNP Paribas Prime Brokerage, referring to WTI crude, the oil most often delivered against the NYMEX contract.
Continued here:
WTI oil price trading at $104 a barrel amid higher weekly US oil inventories
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