WTI oil futures trading near $102 on global supply concerns

WTI oil futures open Friday’s trading session near $102 a barrel as traders turn attention on how the world is going to meet oil demand in 2011 as OPEC member countries keep oil output increases on hold.

Latest WTI Oil Price

US Light crude oil futures for July 2011 delivery was trading at $101.82 a barrel, 05.40 GMT this morning in electronic trading on the NYMEX, after hitting $102 earlier in today’s trading session.

Supply and Demand

Global crude oil demand is expected to outpace actual supplies later this year by the widest margin since 2007 and unrest in North Africa and the Middle East is not helping the situation.

“You see this general nervousness in the US and Europe. Prices are going to go up, that’s what’s going to happen.” said Houston oil analyst Andrew Lipow.

OPEC and Oil Prices

In a contentious meeting in Vienna on Wednesday, OPEC member countries failed to agree on new oil production targets, which now sets the stage for higher oil prices later this year as global demand for oil is now rising faster than supplies.

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WTI oil futures trading near $102 on global supply concerns