US crude futures plunge $4.27/bbl on stock market sell-off

07 November 2012 21:18  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude for November delivery settled at $84.44/bbl on Wednesday, down $4.27 versus the previous close, tracking a sell-off in the stock market and across various commodities as investors expressed concerns regarding the US fiscal crisis and possible gridlock in Washington following the re-election of President Barack Obama.

The energy complex also responded to the weekly supply statistics from the Energy Information Administration (EIA) showing a build in crude, gasoline and distillates inventories.

Besides the European debt crisis, spending cuts and tax increases in the US that will go into effect in 2013 could slow down the economy unless an agreement is reached about the budget deficit.

Aggressive length liquidation also penetrated technical support barriers and triggered sell-stops.

Downside momentum drove December West Texas Intermediate (WTI) down to $84.05/bbl, down $4.66, before settling near the bottom of the session.

Same month ICE Brent bottomed out at $106.53/bbl and settled at $106.82, down $4.25.  

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