US WTI oil prices open Monday’s trading session lower, back under $97 a barrel as a broad sell off in stock markets and commodities looks set to continue this week as worries about Europe\u2019s debt problems and some weak economic data fuel worries about future crude oil demand.<\/p>\n
Latest WTI Oil Price<\/strong><\/p>\n US Light crude oil futures for January 2012 delivery was trading at $96.67 a barrel, 08.02 GMT this morning in electronic trading on the NYMEX.<\/p>\n On The Markets<\/strong><\/p>\n Risk aversion gripped Asian stock markets in trading this morning, following steep falls on Friday, as concerns about the European debt and the impact on global growth remained in focus.<\/p>\n Hong Kong\u2019s Hang Seng Index dropped 1.4 percent, while the Shanghai Composite index traded down 0.1 percent, while Japan\u2019s Nikkei Stock Average and Australia\u2019s S&P\/ASX 200 index each ended down 0.3 percent.<\/p>\n “These are clearly volatile times. If governments do the right thing and work through their problems, then confidence will return, and stock markets will recover. But the longer that the problems continue and debt costs rise, then people will speculate about worst case scenarios.” strategists at CommSec said in reference to the European situation.<\/p>\n “The highly unstable equilibrium that oil prices have been in continues, with heightened fundamental and geopolitical risks fighting for influence against the escalation of sovereign debt concerns.” strategists at Barclays Capital said.<\/p>\n Profit Taking – Correction Risk<\/strong><\/p>\n After topping $103 a barrel last Wednesday, oil traders have shorted US WTI oil futures, mainly due to concerns about ripple effects from Europe’s debt crisis and worries that crude oil rallied too high, too fast.<\/p>\n “It’s reached levels where you should be taking profits. “There is the risk here in the short term for a substantial correction.” said Brian LaRose, an energy analyst at brokerage United ICAP.<\/p>\n