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WTI oil trading shy of $100, price forecast remains mixed
Published on July 22, 2011 by oilprices · No CommentsWTI oil prices open Friday’s trading session just shy of the $100 a barrel mark as oil price forecasts remain mixed for 2011 with analysts fighting over what path they believe crude oil will follow into the autumn.
Latest WTI Oil Price
US Light crude oil futures for September 2011 delivery was trading at $99.57 a barrel, 06.05 GMT this morning in electronic trading on the NYMEX.
US Oil Prices Remain Mixed
US oil prices were mixed on Thursday as eurozone leaders clinched a deal on resolving Greece’s debt crisis and the IEA announced it would not release additional crude oil reserves. At one point yesterday, WTI was trading above $100 for the first time since 10th June.
“It’s all been about what is going on in Europe. We’re seeing a super strong euro. It gave the impetus behind crude to pop its head above 100 dollars.” said Matt Smith, an oil analyst with Summit Energy.
Traders have been keeping a close eye on the situation in Europe out of fear that a Greek default could trigger a continent wide economic slowdown, cutting into global energy demand.
However, some analysts believe that oil prices are set to fall lower into the third quarter of 2011, with Julian Jessop at Capital Economics, commenting in a report that he expects oil futures to move lower with Brent crude falling by over 20 percent by the end of the year.
His forecast is based on persistent sluggishness in demand, increased nervousness in financial markets over the fallout from the debt crisis both in Europe and the US, a stronger US dollar, and, although the precise outcome and timing is obviously still uncertain, an end to the civil war in Libya.
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