US crude falls $3.75/bbl on world economic fears, stronger dollar

03 October 2012 20:56  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude for November delivery settled at $88.14/bbl on Wednesday, down $3.75 versus the previous close, tracking a stronger dollar, weak economic data from China and concerns that the eurozone may have fallen back into a recession.

The dollar received a boost from data showing an improvement in employment and in the US services sector.

The sell-off overshadowed the weekly supply statistics from the Energy Information Administration (EIA), which showed a contrary to forecast, although small, drawdown in crude inventories. Gasoline inventories rose slightly, contrary to expectations of a drawdown, while distillate inventories fell sharply.

The focus of the EIA report, however, was a decline in gasoline demand, a reflection of a struggling economy.

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

During the normal floor session, November West Texas Intermediate (WTI) plunged to $88.05/bbl, down $3.84, before settling just above the session’s low. The downside momentum rolled onto electronic trading, with November crude hitting a low of $87.70/bbl before attempting to rebound.

November ICE Brent established an intra-day low of $108.05/bbl and settled at $108.17, down $3.40. The losses were also extended afterwards, bottoming out at $107.67/bbl before rebounding.


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

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index