Crude falls back $2/bbl after record one-day gains

23 September 2008 10:23  [Source: ICIS news]

SINGAPORE (ICIS news)--Crude futures fell more than $2/bbl on Tuesday, after record gains of up to $25/bbl the previous day amid a stronger dollar and uncertainty surrounding the US government’s $700bn bank rescue plan.

 

At 08:32 GMT, November NYMEX light sweet crude futures were trading at $107.10/bbl, down $2.27/bbl on Monday’s settlement level, having earlier fallen to a low of $106.76/bbl down $2.61/bbl.

 

At the same time, November Brent on London’s ICE Futures was trading at $103.86/bbl, down $2.18/bbl on Monday’s settlement price, having earlier hit a low of $103.47/bbl down $2.57/bbl.

 

Crude prices rose by record one-day increases on Monday with the expiring October NYMEX light sweet crude futures contract (WTI) rising some 16% to settle at $120.92/bbl. Meanwhile, November NYMEX light sweet crude futures gained nearly $7/bbl.

 

Meanwhile, there remained considerable doubts over how successful Washington’s financial rescue plan, which involved buying back much of the bad debt held by banks, would be with politicians of both parties in the US voicing concern.

 

The US dollar has strengthened against the euro, recouping some of the sizeable losses on Monday when values dropped to the lowest levels since late August. The US dollar is currently valued at around €0.6760.

 

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By: James Dennis
+65 6780 4359

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