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WTI oil price shoots higher to $77 on latest IEA report
Published on July 13, 2010 by oilprices · No CommentsWTI oil prices shoot higher, trading over $77 a barrel on Tuesday afternoon as the latest IEA oil report paints a world with higher crude oil demand and oil prices too.
US Light crude oil futures were trading up to $77.16 at 16.30 GMT on the NYMEX.
The IEA raised its estimates for global oil demand, which it now sees 2.1% higher at 86.5 million barrels a day. The IEA also said it expects oil prices to average $79.40 a barrel in 2011.
“Oil isn’t really following its own fundamentals, except maybe on Wednesday if we see a draw in crude inventories,” said Matt Smith, an analyst at Summit Energy.
An interesting trend in crude oil prices has developed; the commodity has moved in unison with equity markets recently, as traders perceive a strong relationship between the strength of the global recovery and the demand for oil.
The IEA also reported that global oil demand next year is expected to be “driven entirely” by countries outside of the OECD, while OPEC crude oil capacity is set to fall on the back of lower volumes out of both Iran and Venezuela.
Tags: demand, IEA, IEA Report, oil, oil price, prices, report, trading, wti oil price