Crude down $1/bbl on worries over Europe debt, US inventories

21 May 2010 10:43  [Source: ICIS news]

SINGAPORE (ICIS news)--Crude futures fell by more than $1/bbl (€0.80) on Friday amid worries over the debt crisis among European nations and high US inventory levels, traders said.

At 08:46 GMT, July NYMEX light sweet crude futures were down $1.12/bbl at $69.76/bbl, after hitting an intra-day low of $69.31/bbl earlier in the session. The June NYMEX light sweet crude futures contract (WTI) expired on Thursday.

July Brent on London’s ICE futures, meanwhile, fell 79 cents/bbl to $71.05/bbl. The North Sea benchmark hit a session low of $70.56/bbl earlier in the day.

Asian equity markets also fell sharply on concerns over European debt with the Nikkei in Japan down 2.45%. Meanwhile the US dollar strengthened against the euro late in the afternoon, recovering from losses made earlier in the day. The stronger US dollar made commodities such as crude more expensive for overseas investors.

High inventory levels in the US, particularly the record high crude stocks at the Cushing terminal in Oklahoma, continued to depress values for benchmark NYMEX light sweet crude (WTI). The landlocked Cushing terminal is the delivery point of WTI.

($1 = €0.80)

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By: James Dennis
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