WTI oil price trading near $78 on lower US oil supplies

WTI oil prices open Thursday’s trading session near the $78 a barrel mark as lower US oil supply figures our yesterday boosted oil prices over two percent.

US Light crude oil futures for November 2010 delivery was trading at $77.75 a barrel, 08.00 GMT on the NYMEX, after closing yesterday’s trading session at $77.86.

Lower US Oil Supplies

The US Energy Department said commercial crude oil supplies decreased by 500,000 barrels to 357.9 million barrels, while analysts had forecast an increase of 2.2 million barrels.

Meanwhile, the US dollar, which has been a key driver of oil prices recently, has regained a measure of strength after hitting a five month against the euro yesterday, although the dollar remains under pressure against a basket of major currencies.

Crude oil prices rise when the US dollar weakens as the commodity becomes cheaper to buy for other currency holders.

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