US crude dips $1.78/bbl on fading hopes of monetary stimulus

02 August 2012 21:31  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude (WTI) for September delivery settled at $87.13/bbl on Thursday, down $1.78 versus the previous close, tracking a sell-off in the stock market driven by investors’ disappointment that the European Central Bank (ECB) and the US Federal Reserve did not implement any new monetary stimulus to boost economic growth.

In the currency markets, the euro shifted lower against a basket of currencies, encouraging selling across various commodities.

A rise in US jobless claims and a decline in factory activity also weighed on the market.

September NYMEX crude hit an intra-day low of $86.92/bbl, down $1.99, before rebounding in choppy action ahead of the closing bell.

Brent and WTI fell out of step, with ICE Brent for September delivery receiving support from supply issues in the North Sea. After bottoming out at $104.97/bbl, Brent settled at $105.90/bbl, down 6 cents.

By: Ignacio Sotolongo
+1 713 525 2653

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