WTI oil price trading higher, over $73 on US supplies data

WTI oil prices open trading over $73 a barrel Thursday in Asia after a report showed US crude inventories fell more than expected, suggesting consumer demand is growing.

US Light crude oil futures for July delivery was at $73.65 a barrel at midday Singapore time on the NYMEX.

Crude supplies fell more than expected last week, dropping by 1.4 million barrels, the American Petroleum Institute said late Wednesday. Analysts had expected an increase of 1.0 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

Meanwhile, the Dow Jones industrial average rose 2.2 percent Wednesday and all major Asian stock markets gained in early trading on Thursday.

“The driver for oil prices at the moment is economic recovery and there’s some evidence of it in the US and UK, but overall the concern is the eurozone debt crisis,” said CMC Markets analyst Michael Hewson.

“Jittery oil trading is here to stay for now as we continue to track the broader markets and swings in global risk sentiment,” said VTB Capital analyst Andrey Kryuchenkov.