WTI oil holds gains near $81 amid lower stock markets

WTI oil futures are trading firm over the $81 mark amid a choppy start to the week sees stock markets in the US and Europe heading lower, but having little effect on crude oil prices.

US Light crude oil futures for November 2010 deliver was trading at $81.70 a barrel, 08.00 GMT on the NYMEX.

The Dow Jones suffered its heaviest fall in a month as investors remained nervous about the weak US economy leading into the third quarter corporate earnings reporting season later this month. The Dow Jones Industrial Average lost 78.41 points, or 0.72 percent, to 10,751.27.

“It is really hard to make some fundamental sense from this market. You are seeing a market that is overbought and overvalued and some profit taking ensued as the floor trading session drew to a close.” said Tom Bentz, an analyst with BNP Paribas in New York.

WTI crude oil has added more than $6 in five trading sessions, and ended Friday at a seven week high. Weekly gains closed in on seven percent to make the previous week oil’s best since the middle of February 2010.