The price of US WTI crude oil futures lost another 2 percent in trading today and is currently back around $88 a barrel as a stronger US dollar capped commodity prices across the board.
Latest WTI Oil Price
US Light crude oil futures for May 2012 delivery was trading at $88.87 a barrel, 14.41 GMT today in electronic trading on the NYMEX.
European Debt Concerns
Both WTI and Brent oil prices edged lower in trading on Wednesday as concerns that debt plagued Spain could be forced to seek a bailout roiled the markets. Prices were also under pressure after the euro plummeted, making dollar priced oil more expensive and dampening demand.
US Inventory Levels
Analysts forecast that US crude oil inventories will remain at the highest level for this time of the year in 22 years, indicating faltering demand in the world’s largest oil consuming economy.
Early forecasts call for US crude oil stocks to drop by 400,000 barrels after rising by more than 35.4 million barrels over the past eight straight weeks.
“As US stockpiles hit their highest level for more than 20 years, confidence is falling off a cliff,” said Justin Harper, market strategist at IG Markets Singapore.
Original post:
US WTI oil price looses another 2 percent, trades back near $88 a barrel
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