WTI oil trading at $82, down 3 percent on weak markets

17 November 2010 17 November 2010

BonTrade

WTI oil futures open trading near $82 a barrel early on Wednesday as a 3 percent fall for the contract followed world stock markets lower, WTI closed yesterday’s session at $82.33.

Latest WTI Oil Price

US Light crude oil futures for January 2011 delivery was trading at $81.84 a barrel, 07.40 GMT this morning on the NYMEX. The December WTI contract closed yesterday.

“There was a tremendous amount of speculative length poured into the market and it just bled out these last three days.” said Andy Lebow, oil analyst with MF Global.

Stock markets in Europe and the US have fallen for a fourth day sparked by concerns over a slowdown in China and debt problems in Ireland. The US Dow Jones industrial average was pushed to its lowest level in a month at close yesterday.

Further direction for oil traders may come from the US Department of Energy’s report on oil and oil inventory due out later today.

WTI oil prices have been restrained by above average inventory levels in the US recently, but the DOE reported declines in total oil and fuel stocks for the last two weeks, signaling that stockpiles may have peaked.

Yesterday, the US API reported a sharp decline in oil stocks in its own inventory report, with oil inventories down by 7.7 million barrels.