US crude futures fall $2.38/bbl on follow-through selling

21 February 2013 20:26  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude (WTI) for March delivery settled at $92.84/bbl, down $2.38 versus the previous close, on follow-through weakness from Wednesday.

Downbeat economic data from the eurozone and the US pressured crude prices, and the dollar rose against the euro. Also, the stock market lost ground on sentiment that the US Federal Reserve will end its economic stimulus program sooner than expected.

The weekly supply statistics from the Energy Information Administration (EIA) showed a much-greater-than-forecast build in crude stocks - the highest level since July 2012. A much-greater-than-expected drawdown in distillate and gasoline inventories and a rise in gasoline demand offset the crude data.

WTI sold down on Wednesday in response to unconfirmed reports that a troubled commodity hedge fund had been forced to liquidate assets.

The downside momentum once again penetrated technical barriers, triggering sell stops with April crude bottoming out at $92.63/bbl, down $2.59 before the dip attracted buying.

ICE Brent for April delivery performed better than its American counterpart, bottoming out at $113.32 before settling at $113.53/bbl, down $2.07.

By: Ignacio Sotolongo
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