WTI crude oil trading near $83 as US oil supplies see big fall

WTI crude oil futures open Thursday’s trading session back near $83 a barrel after the US government said yesterday that crude oil supplies fell more than expected last week and a new report forecasts stronger global demand to come.

Latest WTI Oil Price

US Light crude oil futures for September 2011 delivery was trading at $82.89 a barrel, 07.10 GMT in electronic trading on the NYMEX. The US contract closed yesterday’s trading session up over 4 percent, although the US stock markets sold off again.

The Dow Jones was down more than 3 percent at close on Wednesday, while oil and stock markets have tended to move in the same direction, oil futures took a break from the norm and moved higher.

US Oil Supplies Fall Again

The US EIA (Energy Information Administration) said Wednesday that US crude oil supplies fell last week by 5.2 million barrels, whilst analysts had estimated that supplies would rise by almost 2 million barrels instead.

Latest Global Oil Demand Forecasts

The IEA has trimmed it’s outlook for the growth of global oil demand this year, but raised it’s forecast for 2012. OPEC had said on Tuesday that demand for crude oil will grow at a slower pace in 2011 than it previously thought but rise further next year.

The latest forecasts are driving both WTI and Brent oil prices back higher, despite global turmoil in stock markets.

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WTI crude oil trading near $83 as US oil supplies see big fall