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Daily Oil Prices 24 Jan 2011

crude oil trading

WTI Oil Chart 24 Jan 2011

Today’s weaker dollar and positive equity markets have done little for the WTI contract which at time of writing is trading at $87.80 per barrel, having fallen from a high of almost $90 per barrel.  Crude oil remains soft on fears that China, which the world’s second largest consumer of energy, is likely to raise interest rates in an effort to clamp down on inflation thereby slowing economic growth and demand for energy.

In addition last week’s inventory report gave oil traders a further excuse for offloading oil contracts as the weekly stockpile figures for Cushing showed an increase of +2.62m barrels bringing the total to +335.7m.  The forecast had been for a further draw.  Gas supplies, distillates and heat oil also all rose and with OPEC believing oil supplies to be “in balance” given the probable slowdown in demand and plenty of capacity crude oil prices will be looking for a move back to around $85 per barrel in the short term.

WTI & Brent Spread At Widest Since Feb 2009