US crude futures fall $1.62/bbl on stronger dollar

06 December 2012 21:48  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude for January delivery finished down on Thursday for the third consecutive session, settling at $86.26/bbl, down $1.62 versus the previous close, as the dollar strengthened against the euro.

A poor economic outlook for the eurozone pressured the region's currency, overshadowing modest gains in the stock market in response to data showing a decline in US claims for unemployment benefits.

Refined products remained under pressure from the weekly supply statistics from the Energy Information Administration (EIA), which showed a substantial build in gasoline and distillates inventories, helping drive West Texas Intermediate (WTI) down despite a build in crude inventories.

Investors continued to express concerns regarding the US debt crisis and the lack of compromise in the political fiscal cliff drama. 

Aggressive selling also penetrated technical support barriers, triggering sell-stops and extending the losses.

Downside momentum drove December WTI down to $85.68/bbl, down $2.20, before the dip attracted buying.

Same month ICE Brent bottomed out at $106.33/bbl and settled at $107.03, down $1.78. 

By: Ignacio Sotolongo
+1 713 525 2653

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