LP:WTI crude oil price holding near $94 amid record high US inventory levels
The price of NYMEX WTI oil opens Friday’s trading session holding out near $94 a barrel after a brief dip yesterday near $92 but crude prices remain resilient amid record high US inventory levels for this time of the year.
Latest WTI Oil Price
US Light crude oil futures for July 2013 delivery was trading at $93.89 a barrel, 07:46 GMT this morning in electronic trading on the NYMEX. WTI crude sank as low as $92.21 on Thursday after weak manufacturing data from China triggered stock markets to slide lower.
US Inventory Levels
According to the US EIA (Energy Information Administration) US crude oil stockpiles dropped by 300,000 barrels this week to 394.6 million barrels, however oil supplies remain above the upper limit of the average range for this time of year. In recent months, crude oil stockpiles have risen to heights unseen in more than 80 years.
US Oil Demand
US crude oil demand inched up 0.3 percent in April from a year earlier, despite a sharp 3.9 percent drop in gasoline use, the US API (American Petroleum Institute) said in a report out yesterday.
“For the second month demand is up from a year ago. Consumer confidence has improved and distillate deliveries are up, but gasoline demand remains weak.” API chief economist John Felmy said in the data report.
US crude oil output climbed 15.9 percent from a year earlier to a 21 year April high of 7.264 million barrels a day. Crude oil production topped seven million barrels a day for a sixth straight month, as new technology such as hydraulic fracturing and horizontal drilling, unlocks oil deposits trapped in shale rock in several areas of the nation.
