WTI oil price ends week at $80, market uncertainty returns

WTI oil prices end a negative week’s trading at $80 a barrel as traders weighed uncertainty in the world’s economies and stock markets, which could shake crude oil demand.

WTI Oil Futures – Closing Price

US Light crude oil futures for November 2011 delivery ended the week’s trading session at $79.85 a barrel on the NYMEX, closing $8.11 lower than last week’s Friday close of $87.96 a barrel.

Market Uncertainty

The market remained dogged by persistent worries over another potential recession in America and the deepening debt crisis surrounding the eurozone.

“It’s really uncertainty and nervousness, general trepidation in the market which is taking away the impetus for oil prices to go higher.” said Matt Smith of Summit Energy.

“The moves have been exacerbated by some larger players liquidating positions,” said Kingsview Financial trader Matthew Zeman.

Both WTI and Brent oil prices plunged this week as European debt panic once again slammed into the markets, fueled by the downgrade of eight Greek banks by Moody’s and traders liquidating their positions, concerned over a slump that could dent oil demand.

However, while traders investors bet that world oil demand may be on the downturn, US oil production is skyrocketing. Just last week the US EIA announced that US crude oil production surged 13 percent to 5.75 million barrels a day last week, the highest level since 2003.

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