WTI oil trading closer to $80, follow US markets higher

WTI oil prices are trading higher on Wednesday and are moving closer to the $80 mark as US stock markets show some positive upsides on second quarter company earning results.

US Light crude oil futures for September 2010 delivery was at $77.60, 08.00 GMT on the NYMEX.

Oil traders are also studying global stock markets as a sign of overall investor sentiment. The US Dow Jones rose 0.7 percent on Tuesday and the S&P 500 gained 1.1 percent on positive second quarter earnings results in America.

“The bottom line is that we will continue to watch the S&P as an indicator for crude oil.” energy analyst and trader the Schork Group said in a report.

New Gulf Hurricane Warning Helps Lift Oil Prices

One of the other reasons why oil prices could hit $80 soon is due to the latest update from the US National Hurricane Center which alerted that Puerto Rico and the Dominican Republic has a 60 percent chance of becoming the second named tropical cyclone of the Atlantic Hurricane season.