WTI crude trading back near $100 on US oil stocks decline

WTI oil futures open Thursday’s trading session back near the $100 marker as US oil stocks decline again, pushing oil prices higher whilst the US dollar gave up earlier gains on positive debt talks in Europe pushing the euro higher.

Latest WTI Oil Price

US Light crude oil futures for September 2011 delivery was trading at $98.61 a barrel, 08.15 GMT this morning in electronic trading on the NYMEX.

EIA – US Oil Stocks

The EIA reported yesterday a much larger than expected draw in US crude oil inventories for the week ended 15th July, saying that US commercial crude oil inventories decreased by 3.7 million barrels from the previous week compared with the pull of 1.3 million barrels expected by analysts.

Meanwhile, debt talks in Europe pushed the euro currency higher and the dollar fell back. A weaker US dollar tends to fuel oil price rises.

“European leaders meet on Thursday to try and ease the latest sovereign debt concerns, while an expected resolution to the US debt ceiling is also expected by markets. As hopes rise, so do risk assets, US dollar down, equities up, and crude oil prices get its rally on again.” said Summit Energy analyst Matt Smith.

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WTI crude trading back near $100 on US oil stocks decline