LP:WTI Light oil price falls back to $95 as the US dollar continues to climb
NYMEX WTI Light oil futures open Tuesday’s trading session back at $95 a barrel as crude oil prices once again come under attack from a stronger US dollar which continues to climb higher against major world currencies.
Latest WTI Oil Price
US Light crude oil futures for June 2013 delivery was trading at $95.39 a barrel, 07:07 GMT this morning in electronic trading on the NYMEX. The contract fell to close at $94.99 a barrel on the NYMEX on Monday. Traders also digested comments from key OPEC member Iran, who hinted at lower output to compensate for falling oil prices.
US Dollar Strength
Oil prices suffered Monday as the dollar continued to strengthen, and amid concerns about rising output from key oil producers. The stronger US dollar is causing oil prices to fall, analysts said. The dollar has risen in recent days against the euro and last week passed the 100 yen mark for the first time in four years.
OPEC Oil Production
Oil production from OPEC (Organization of the Petroleum Exporting Countries) rose by 250,000 barrels a day in April from a month earlier to 30.5 million barrels per day, according to a Platts survey of OPEC and other oil industry officials and analysts, released Monday.
The survey showed production is running about 500,000 barrels a day above the cartel’s 30 million barrel-per-day output ceiling. The report arrived ahead of OPEC’s meeting on May 31.
IEA Oil Outlook
Later Tuesday, the IEA (International Energy Agency) is slated to release its medium-term oil outlook report, and the American Petroleum Institute is due to publish its weekly report on US crude oil supply. The API’s report will be followed by supply data from the US Energy Information Administration on Wednesday.
Analysts polled by Platts expect crude stockpiles to continue to push to record levels, with an expected build of 300,000 barrels in the week ended May 10. US commercial crude stocks were at 395.514 million barrels for the week ended May 3, more than 9 percent higher than the EIA’s five year average, Platts said in a statement.
