WTI oil price heads towards $75 on high US supplies

WTI oil prices are heading back towards the $75 mark in early trading today amid high US crude oil supplies which are still seven percent above 2009 levels, suggesting oil demand remains sluggish.

US Light crude oil futures for October 2010 delivery was trading down at $75.04, 07.20 GMT on the NYMEX.

“The increases in those surpluses cannot just be dismissed, regardless of the week-on-week improvements. There is still more oil than there has been for nearly three decades.” Cameron Hanover said in a report.

The EIA said US crude oil stocks fell by 2.489 million barrels in the week ended 10th September, in line with market expectations and counter to a surprise large increase reported by a trade group a day earlier.

Total WTI crude oil stocks remain near the highest level since January 1983.

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