Author: SondraHunter

WTI oil prices open Monday’s trading session mixed although lower under $82 a barrel as speculation that the conflict in Libya may be coming to an end after rebels entered Tripoli where heavy fighting is currently taking place.

Latest WTI Oil Price

US Light crude oil futures for October 2011 delivery was trading at $81.32 a barrel, 07.40 GMT this morning in electronic trading on the NYMEX. The US oil contract closed offf last week at $82.71.

According to analysts, a rebel victory in Libya would likely put added downward pressure on oil prices, which are already falling amid concerns about the slowing economy.

“We expect oil prices to fall when highly desirable, sweet Libyan crude production is resumed and enters the pipeline.” David Kotok, chairman of Cumberland Advisors, wrote Sunday.

Before the war halted exports, Libya was pumping some 1.6 million barrels a day, accounting for nearly 2 percent of global crude oil supply.

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WTI oil trading near $82, remains mixed on Libya fighting

Brent oil prices fell back to $106 a barrel in light trading this morning, following Euro stock markets lower as fears that another global recession is just around the corner eats away at the price of crude oil futures.

Latest Brent Oil Price

In London, Brent crude oil futures for October 2011 delivery was trading at $105.99 a barrel, 07.55 GMT this morning on the ICE Futures Exchange.

European Bank Problems

Revelations that one unnamed bank in the eurozone has been forced to borrow from the ECB to maintain the flow of funds to its business sent waves through the markets and European bank stocks plummeted on Thursday, where the sector saw its largest single day drop since March 2009.

Investors are worried global growth is slowing more than first thought, and are concerned that major economies are heading back into recession.

“This short term downturn is not done yet. The fundamental picture is not that bad but if the overall economy remains weak it is very hard to make a case for a bull run in oil.” said Tony Nunan, a risk manager with Mitsubishi Corporation in Japan.

“The most recent economic data is what’s guiding all asset classes. This means that just about everything but gold is falling right now.” said Adam Sieminski, chief energy economist at Deutsche Bank in Washington.

Euro Markets at Today’s Open

European stocks opened mixed this morning, with investors increasingly disillusioned with efforts by EU authorities to tackle the issue of sovereign debt within the region and worries about a potential double dip global recession.

“Fears about a global recession have increased in recent days on the back of some growth downgrades and the inability of policy makers to get ahead of the current crisis, both in Europe and the US.” said Michael Hewson of CMC Markets.

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Brent oil price hovers at $106, follows Euro stock markets lower

The market seemed to be worried that Fed’s dissenters may affect the central bank’s decision to expand quantitative easing. Stocks in Asian and European session declined amid concerns on rising global economic uncertainties. In the commodity sector, oil prices retreated as demand might be affected by deteriorating growth outlook while gold firmed on safe-haven demand.

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Criticism may Make it Harder to Bernanke to Push QE3

WTI oil futures open Wednesday’s trading session hovering at $87 a barrel as the latest weekly oil inventory data out of the US paints a mixed picture of ongoing consumer demand in America.

Latest WTI Oil Price

US Light crude oil futures for September 2011 delivery was trading at $87.34 a barrel, 07.25 GMT this morning in electronic trading on the NYMEX.

US Weekly Oil Inventory Data

The US API (American Petroleum Institute) said late on Tuesday that US crude oil inventories rose 1.7 million barrels last week while analysts had predicted a decrease of 500,000 barrels. However, petrol inventories fell 5.4 million barrels last week while distillates dropped 1.3 million barrels, the API said.

“The API numbers were quite supportive as gasoline supplies have come down, but risks continue to be there on the economic front,” said Victor Shum, an analyst with energy consultancy Purvin and Gertz.

The US EIA (Energy Information Administration) reports its weekly supply data later Wednesday.

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WTI oil trading near $87 on mixed US oil inventory data

The focus was shifted to Europe yesterday. Disappointedly, both the macroeconomic data released in the Eurozone and the Franco-German summit raised market worries over the outlook in the region. Stocks and commodities (excepting for gold) lost ground. In the US, Fitch’s affirmation of the Treasury’s AAA rating supported the US dollar. Economic indicators, however, sent mixed signals on the country’s developments.

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Financial Markets Drop as France and Germany Failed to Deliver Feasibile Solutions to Contain Crisis