US crude futures fall $3.31/bbl on high inventories

19 September 2012 21:30  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude (WTI) for October delivery finished down by $3.31 at $91.98/bbl on Wednesday from $3.31 on the previous day in response to US weekly supply statistics that showed a much greater-than-expected build in crude inventories.

Domestic crude oil inventories rose by 8.5m bbl to 367.6m bbl last week, according to the weekly report by the Energy Information Administration (EIA).

Reports that Saudi Arabia was considering raising crude production in order to keep oil prices in check also contributed to the slide.

The downside momentum penetrated technical sell-stops, resulting in aggressive length liquidation. It was the third consecutive drop this week.

Concerns regarding the eurozone debt crisis and slow global economic growth trumped the previous week’s decision by various central banks to launch stimulus programs.

Ahead of Thursday’s contract expiration, October WTI established the intra-day low of $91.25/bbl, down $4.04, before the dip attracted buying.

November ICE Brent plunged to $107.40/bbl and settled at $108.19, down $3.84.

By: Ignacio Sotolongo
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly