US crude plunges $4.56/bbl on pessimistic economic data

15 June 2011 21:09  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude for July delivery settled at $94.81/bbl, down $4.56, on Wednesday, after weak economic data strengthened the dollar and triggered a sell-off in the stock market.

Prices rose early, tracking the weekly supply statistics from the Energy Information Administration (EIA), which showed a much greater than forecast drawdown in crude inventories.

July crude established an intra-day high of $99.95/bbl before the data was factored in and the upside momentum ran out of steam.

The euro tumbled in response to the lack of resolution regarding the Greek debt. The US stock market sold down sharply on the back of poor housing and manufacturing data.

Front month crude bottomed out at $94.01/bbl, down $5.36 versus the previous close, before a portion of the losses were recouped ahead of the closing bell.

ICE Brent for July delivery went off the board at the end of the session, bottoming out at $116.80/bbl before settling at $117.10/bbl, down $3.06.

August Brent settled at 113.01/bbl, down $6.34.

By: Ignacio Sotolongo
+1 713 525 2653

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