WTI oil futures open Friday’s trading session back near $100 a barrel after a near record sell off in crude oil saw US Light oil futures loose $10 a barrel, or around 9 percent in one trading session.
Latest WTI Oil Price
US Light crude oil futures for June 2011 delivery was trading at $99.94 a barrel, 07.30 GMT this morning in electronic trading on the NYMEX.
WTI oil prices were down $14 from last Friday, when a barrel of WTI crude oil hit its high for the year, $113.93.
Sell Orders Put WTI Back Under $100
Oil traders and analysts were at a loss to attribute all of the selling of oil futures to worsening economic trends after WTI oil broke below $100 for the first time since March as technical triggers set off a cascade of sell orders.
Gloomy economic news from Europe added to the near record decline for oil prices, while some analysts today believe that oil futures look undervalued after the steep fall.
“It’s possible that the commodities market has hit the top, though you never know what could happen tomorrow. But it seems to have hit a peak. People are saying maybe we overdid it, looking around and thinking about taking their money out and doing something else with it.” said Tony Dillon, an oil specialist at ICIS Heren.
US Oil Inventories
Meanwhile, US crude oil inventories rose by 3.4 million barrels last week, well above the expected 2 million increase in part because Americans have cut down on their driving as petrol prices have risen to more than $4 a gallon.
Original post:
WTI oil trading back at $100 after near record crude sell off
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