WTI oil trading near $93 on lower US oil stocks and dollar

WTI oil futures open Wednesday’s trading session near $93 a barrel after a report showed US crude oil stocks dropped more than expected last week, while the US dollar gave up some recent gains, adding fuel to higher oil prices.

Latest WTI Oil Price

US Light crude oil futures for August 2011 delivery was trading at $92.78 a barrel 06.05 GMT this morning in electronic trading on the NYMEX.

US Oil Stocks Head Lower Again

The US API (American Petroleum Institute) said late on Tuesday that US crude oil stocks fell 2.7 million barrels last week, while analysts had predicted a drop of only 1.7 million barrels.

Meanwhile, the US dollar lost recent gains in currency market trading. The US ICE Dollar Index, which tracks the US dollar against six major world currencies, was recently down 0.3 percent to 75.064. Crude oil prices extended a short rally throughout Tuesday’s session as the index declined.

“In the absence of any fundamentals, it looks like we’re just trading off some of the outside markets, and that makes the US dollar a key factor.” said Andy Lebow, vice president at brokerage MF Global in New York.

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WTI oil trading near $93 on lower US oil stocks and dollar