US crude futures fall $1.39/bbl as eurozone crisis deepens

26 September 2012 22:39  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude (WTI) for November delivery finished down for the third consecutive session on Wednesday, dropping by $1.39 to hit  $89.98/bbl as it tracked the weakening of the euro against the US dollar.

A strong dollar makes dollar-denominated commodities more expensive. The euro weakened on news of violent protests in Europe stemming from the debt crises.

The sell-off overshadowed the weekly supply statistics from the Energy Information Administration (EIA), which showed a contrary-to-forecast drawdown in crude inventories.

Aggressive length liquidation also penetrated technical sell-stops, extending the losses.

A drawdown in gasoline stocks combined with an explosion at a Canadian refinery to lift gasoline prices sharply higher on the NYMEX. Reformulated gasoline (RBOB) futures for October delivery settled at $3.0811/gal, up 11.40 cents.

November WTI plunged to $88.95/bbl before the dip attracted buying.

November ICE Brent established an intra-day low of $108.45/bbl and settled at $110.04, down 41 cents.

By: Ignacio Sotolongo
+1 713 525 2653

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