WTI crude oil futures are trading firm at $102 this afternoon as oil demand forecasts remain strong on expectations that China’s economy and its appetite for petroleum and crude oil will continue to grow in 2012.
Latest WTI Oil Price
US Light crude oil futures for February 2012 delivery was trading at $102.51 a barrel, 17.35 GMT this afternoon on the NYMEX, or up 1.2 percent over today’s opening price.
China’s Oil Demand
Oil prices have seen support after China said oil imports grew 6 percent in December, when compared to a year earlier. China is the world’s second biggest oil consumer behind the US. Strong demand for oil in China will likely help support higher global crude prices in 2012.
Iran Tensions
Meanwhile, the IAEA said late on Monday confirmed that Iran has begun enriching uranium at a new site deep in the mountains near the city of Qom.
The news marked the latest escalation of the row over Iran’s nuclear program, and follows threats from Iran to close the Strait of Hormuz, the waterway through which about a third of the world’s sea-borne crude oil passes.
“The shipping area around Iran in the Strait of Hormuz is a key factor,” said Carl Larry, president of trading advisory firm Oil Outlooks and Opinions. “Iran plays a big part of the upside of the market. I don’t think we’ve added a full premium of Iran risk yet.”
Oil market participants have been closely following events between Iran and the West in recent months, after the IAEA accused the country late last year of taking significant steps toward developing a nuclear weapon.
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WTI crude oil trading firm at $102 as 2012 oil demand forecast remain strong
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