US crude futures fall $1.95/bbl on European woes

23 May 2012 21:07  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX West Texas Intermediate (WTI) for July delivery settled at $89.90/bbl on Wednesday, down $1.95 versus the previous close, as the dollar surged against the euro as a result of European political and economic uncertainties, in particular the possibility of Greece exiting the eurozone.

On the first session as spot month, July crude also fell in response to the weekly supply statistics from the Energy Information Administration (EIA), showing crude inventories rising for the ninth consecutive week.

The EIA data also revealed a substantial drawdown in gasoline and distillate stocks but this failed to keep the crude losses in check.

Market participants were also tracking negotiations between Iran and United Nations officials, which could result in a deal over its nuclear programme.

Impulsive selling pressured front month WTI to establish the session’s low at $89.28/bbl, down $2.57, before rebounding.

ICE Brent for July delivery bottomed out at $105.39/bbl before settling at $105.56/bbl, down $2.85.

By: Ignacio Sotolongo
+1 713 525 2653

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