WTI oil futures open Wednesday’s trading session firm over $88 a barrel after the latest weekly crude oil data out of the US showed that oil stocks fell again, suggesting that oil demand in America could be improving.
Latest WTI Oil Price
US Light crude oil futures for November 2011 delivery was trading at $88.62 a barrel, 06.45 GMT this morning in electronic trading on the NYMEX. The US contract closed yesterday’s trading session up 2.3 percent at $88.34 a barrel.
US Oil Stocks – Weekly Report
The US API (American Petroleum Institute) said late on Tuesday that crude oil inventories fell 3.1 million barrels last week while analysts surveyed by Platts had predicted an increase of 1.8 million barrels.
Inventories of gasoline dropped 1.6 million barrels last week while distillates slid 2.2 million barrels, the API said. The Energy Department’s Energy Information Administration reports its weekly supply data later today.
US crude oil prices have jumped 17 percent from $75 two weeks ago as investor optimism was bolstered by signs European leaders will soon announce a plan to contain the region’s sovereign debt crisis.
Oil traders have also been encouraged by gains in global stock markets after a period of sustained losses. The US Dow Jones industrial average rose 1.6 per cent Tuesday and most Asian stock markets advanced Wednesday.
However, some analysts are forecasting commodities such as oil prices will drop next year amid weak global economic growth and a stronger US dollar, which makes oil more expensive for investors who buy with other currencies.
“We would still expect fresh falls in 2012 as global economic activity remains sluggish, risk appetite stays fragile and the US dollar recovers more ground.” Capital Economics said in a report.
Excerpt from:
WTI oil trading firm over $88 after US crude stocks fall again
Leave a Reply
You must be logged in to post a comment.