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Light oil price trading up near $80 on EIA data, US dollar
Published on November 19, 2009 by oilprices · 1 CommentUS Light crude oil price is touching $80 a barrel in trading on Thursday after figures showed a sharp fall in US oil stockpiles last week from the latest data of the EIA, together with a continuing falling US dollar.
The data came from the American Petroleum Institute, which said US oil stocks fell by 4.4 million barrels instead of the expected 1.2 million. It said the falls came after storms in the Gulf of Mexico disrupted supplies.
US Light crude oil was up 90 cents to $80.04 a barrel in Wednesday trading, while London’s Brent crude oil price had climbed by 94 cents to $79.91. EIA data showed that US crude oil inventories fell 900,000 barrels in the week ended 13 November, despite forecasts of a slight gain.
Eugen Weinberg, head of commodity research at Commerzbank said “If the EIA confirms the big drawdown, and I think they probably will, the market could move up sharply”
The weaker US dollar also lifted support for oil prices and outweighed concern about the economic outlook.
Tags: dollar, EIA, light oil price, trading, US
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Oil supply remains in doubt and crude oil demand still appears weak, but oil trading speculators continue to assume that oil prices are going to rise, hence the price of oil is going higher.