US WTI crude oil is trading firm over $101 a barrel early this morning following the US EIA’s weekly oil inventory report out on Wednesday that showed a massive 10.3 million barrel decline in US oil stocks, whilst oil prices continue to bounce off tensions in Egypt.
Latest WTI Oil Price
US Light sweet crude oil futures for August 2013 delivery was trading at $101.14 a barrel, 08:04 GMT in electronic trading on the NYMEX. Elsewhere, on the ICE Futures Exchange, Brent oil futures for August 2013 delivery was at $105.58 a barrel, with the spread between the Brent and WTI contracts standing at just $4.44 a barrel, the narrowest level since 2010.
US Oil Inventories – Report
The US EIA (Energy Information Administration) said in its weekly report on Wednesday that US crude oil inventories fell by 10.3 million barrels in the week ended June 28, compared to expectations for a decline of only 2.3 million barrels, the most this year, government data showed.
“Oil demand will grow gradually in the second half thanks to some rebound in economies, especially in the US. But there is no shortage of oil, therefore upside will be limited.” according to Ken Hasegawa, an energy trading manager at Newedge Group, Tokyo.
However, American crude oil inventories are still above the upper limit of the average range for this time of year, say the EIA.
WTI surged above $100 a barrel this week for the first time since September 2012, helped along by the political showdown in Egypt that has heightened concern of unrest in the most populous Arab country will spread and disrupt regional oil supplies through the Suez Canal.
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WTI crude oil over $101 as US inventories in massive weekly decline
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