July Nymex WTI prices are trading higher Thursday after closing the previous session below $90 a barrel for the first time in seven months. Prices had plunged as low as $89.29 a barrel last night before some technical buying and a rally on Wall Street saw prices recover to close the session 2.1% lower at $89.90 a barrel, the lowest close posted since Oct 21. Prices have now fallen around 8.4% this year. In terms of supply, the Energy Information Administration (EIA) said Wednesday that crude oil stocks rose 883,000 barrels last week to 382.5mln barrels, the most since Aug 3 1990. Stockpiles have gained by 10.5%, or 36.2mln barrels, over the past 9 weeks. The surplus of crude stocks to the 5 year average has rocketed to 8.4%, or 29.8mln barrels, from less than 6mln barrels since the build up began in the middle of March. WTI prices remain under pressure amid a falling euro which has also inspired some heavy selling into oil and other markets. Washington has signalled that it was hopeful of progress in resolving the dispute over Iran’s nuclear goals as talks on the issue enter a second day. July WTI last $90.26.
EasyForexNews Research Team