US crude falls $2.04/bbl on continued pessimistic sentiment

17 April 2013 20:39  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude for May delivery settled on Wednesday at $86.68/bbl, down $2.04 versus the previous close, tracking plunging global stock and commodity markets as investors liquidated length in response to worries about economic growth.

Crude futures fell sharply after pausing on Tuesday, still driven by sluggish global oil-demand projections and the euro shifting lower against the dollar on talk of a potential cut in eurozone interest rates.

The weekly supply statistics from the Energy Information Administration (EIA) showed a contrary to expected drawdown in crude inventories, the result of a steep decline in foreign imports. The market focused on a substantial decline in gasoline consumption.

Downside momentum also penetrated key technical barriers, triggering sell stops and extending the losses. May West Texas Intermediate (WTI) bottomed out at $86.06, down $2.66, before rebounding.

ICE Brent for June delivery established an intra-day low of $97.26 before settling at $97.69/bbl, down $2.22.

By: Ignacio Sotolongo
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