US crude futures plunge $5.19/bbl on stock market sell-off

14 December 2011 21:12  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude (WTI) for January delivery settled at $94.95/bbl on Wednesday, down $5.19 versus the previous close, tracking a sell-off in the stock market and a weak euro in response to renewed concerns regarding the eurozone’s ability to handle the debt crisis.

The market also experienced aggressive length liquidation after OPEC producers validated a target of 30m bbl/day without an agreement on how to police quota compliance, which would allow global inventories to rise.

A drawdown in crude stocks revealed by the weekly supply statistics from the Energy Information Administration (EIA) was in line with expectations and failed to influence a sell-off across the energy complex.

US refiners have been destocking ahead of the end of the year for accounting purposes.

January crude established an intra-day low of $94.21/bbl, down $5.93, before exhausting the downside and staging a late rebound.

ICE Brent for January delivery bottomed out at $103.34/bbl before rebounding to settle at $105.02/bbl, down $4.48.

By: Ignacio Sotolongo
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