US crude futures plunge $2.74/bbl on high inventories

03 April 2013 20:55  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude (WTI) for May delivery settled at $94.45/bbl, down $2.74 versus the previous close, in response to the weekly supply statistics from the Energy Information Administration (EIA) that showed a much-greater-than-forecast build in crude stocks, overshadowing a drawdown in gasoline and distillate inventories.

The EIA data showed crude inventories are at the highest level since 1990. 

Downside momentum also penetrated technical barriers, extending the selling, and during the normal floor session, May crude WTI bottomed out at $94.30/bbl, down $2.89 before rebounding ahead of the closing bell. With the bias holding to the downside, the losses were extended during electronic trading to hit a lower low of $94.18/bbl.

In other economic news, released data showing a slowdown in private sector job growth triggered a sell-off in the stock market and pressured a number of commodities, including crude oil.

ICE Brent for May delivery underperformed, bottoming out at $106.78 before settling at $107.11/bbl, down $3.58, substantially narrowing the negative trans-Atlantic Brent-WTI arbitrage.

By: Ignacio Sotolongo
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