WTI oil price trading near $88 on profit taking, dollar

WTI oil futures open today’s trading session lower as the US dollar rebounds and traders locked in profits after WTI oil prices rose above $90 a barrel for the first time in more than two years.

Latest WTI Oil Price

US Light crude oil futures for January 2011 delivery was trading at $87.75 a barrel, 07.00 GMT on the NYMEX, after hitting $90.76 yesterday, the highest price since 8th October 2008.

Meanwhile, the US Energy Department bolstered its oil price forecast for 2011 on projections for higher global economic growth. WTI oil prices are forecast to average $86.08 a barrel in 2011, up from last month’s forecast of $85.17, the department said yesterday in its monthly Energy Outlook.

“It doesn’t take that much of an increase in demand to tighten the market and raise prices.” said Tancred Lidderdale, an economist with the EIA.

Traders will seek more clues on the strength of crude oil demand from US oil supply figures due out later today.