NYMEX crude slips from record highs on US stocks

27 February 2008 17:15  [Source: ICIS news]

LONDON (ICIS news)-- NYMEX light sweet crude futures fell by more than $1/bbl on Wednesday to take the front month April contract below $100.00/bbl and down from record highs on the back of the US statistics showing builds in crude and gasoline stocks.

 

By 16:40 GMT, April NYMEX crude had hit a low of $99.52/bbl, a loss of $1.36/bbl from the Tuesday close of $100.88/bbl, before recovering to around $99.75/bbl.

 

At the same time, April Brent crude on London’s ICE Futures was trading around $98.20/bbl, having hit a low of $97.68/bbl, a loss of $1.49/bbl from the previous close.

 

These losses were mainly due to the weekly US statistics which came out earlier in the afternoon showing a larger than anticipated build on crude stocks, plus a much larger than expected build on gasoline stocks, which are now at the highest levels for 14 years.

  

The US statistics wiped out the gains posted earlier in the day, when April NYMEX crude had hit a new front month record high of $102.08/bbl, while April Brent also set a new record at $100.53/bbl.

 

The weakness in the US dollar was attracting additional speculative funds into the energy markets as a hedge against inflation and further pressure was generated by colder winter weather in the US northeast and Europe, which strengthened the heating fuels markets for gas-oil and natural gas.

By: Giovanni Coiro
+44 20 8652 3214

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