WTI oil trading near $99 as volatile market remains uncertain

WTI oil futures open Wednesday’s trading session near $99 a barrel after closing near the $100 mark late yesterday as the oil market remains uncertain about oil demand and supply for the summer of 2011.

Latest WTI Oil Price

US Light crude oil futures for July 2011 delivery was trading at $98.81, 05.10 GMT this morning in electronic trading on the NYMEX after closing off Tuesday’s session at $99.59 a barrel.

Yesterday, banking giants Goldman Sachs and Morgan Stanley upgraded their oil price forecasts and helped kick start Tuesday’s price advance back near $100.

US Dollar and Oil Inventories

In currency markets, weakness in the US dollar helped boost commodity prices, while analysts also expect today’s US EIA oil report to show a decline in weekly oil inventories, which would be only the fifth decrease this year.

However, oil demand is going to be a key factor driving oil prices and without an increase in OPEC oil production, firm demand in emerging markets will contribute to tightening oil inventories and result in higher oil prices.

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WTI oil trading near $99 as volatile market remains uncertain