WTI oil trading at $73, splits from tracking stock markets

WTI oil futures are trading around the $73 a barrel range on Friday as prices split from tracking stock markets after the US Dow Jones finished yesterday’s session back under the 10,000 mark.

US Light crude oil futures for October 2010 delivery was trading at $73.28 a barrel, 07.30 GMT on the NYMEX after climbing higher yesterday.

The powerful draw of $70 a barrel oil for bargain hunters was evident in the split from stock markets, which have guided crude oil futures for much of the 2010. The US Dow Jones spent most of the day lower, and finished at 9,985.

“It looks like the economy hit a brick wall. But I’m not going to be a hero, if we get near $70 I’m going to buy it.” said Phil Flynn, an analyst at PFGBest in Chicago.

“The pull back in oil is driven by corresponding declines in Asian equity markets. Oil will continue to be under pressure because of general pessimism in the market.” said Victor Shum, an energy analyst at consultancy Purvin & Gertz in Singapore.

WTI oil prices have fallen to nearer the $70 range from a highs of $87 a barrel earlier in 2010, drawing buyers in the past two days on the expectation that oil prices will once again rebound.

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