Crude falls over $1/bbl after hitting record highs

20 February 2008 09:38  [Source: ICIS news]

SINGAPORE (ICIS news)--Crude futures prices fell by more than $1/bbl on  Wednesday, as traders took profit after the significant rise in prices on Tuesday which saw March NYMEX light sweet crude futures hit a new record of 100.10/bbl in intraday trade as speculators piled into the market.

 

 At 09:10 GMT, April Brent on London’s ICE Futures was trading at $97.27/bbl, down $1.29/bbl on Tuesday’s close, after earlier hitting a low of $95.22/bbl, down $1.34/bbl.

 

At the same time, March NYMEX light sweet crude futures were trading at $98.90/bbl, down $1.11/bbl on Tuesday’s settlement price, after earlier falling to a low of $98.85/bbl, down $1.16/bbl.

 

The March NYMEX light sweet crude futures contract expires at the close of business later on Wednesday.

 

Prices had surged on Tuesday with weakness in the US dollar attracting buyers into energy markets. Expectations that OPEC will not increase output in order to curb high prices and worries over Venezuelan and Nigerian exports added upward pressure on prices. The reported death of a Nigerian militant group’s leader, which was later denied by the Nigerian government, also increased volatility.

 

Meanwhile, weekly US data, due out on Thursday, is expected to reveal a build in crude stocks of around 2.3m bbls which would be the six consecutive rise in inventory levels. However, distillate stocks are expected to fall by 2m bbls.

By: James Dennis
+65 6780 4359

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