22 July 2013 20:45 [Source: ICIS news]
HOUSTON (ICIS)--NYMEX light sweet crude for August delivery settled at $106.91/bbl, down $1.14, on Monday as market participants squared their books ahead of the front-month contract going off the board.
During the previous week, West Texas Intermediate (WTI) hit a 16-month high of $109.32/bbl, placing crude futures in overbought territory.
Downside momentum also triggered technical sell stops, driving the August contract down to establish the session’s low at $106.43/bbl, down $1.62, before rebounding.
The September WTI contract bottomed out at $106.55/bbl, down $1.32, but the dip was viewed as a buying opportunity and a portion of the losses recouped to settle at $106.94/bbl, down 93 cents.
A sell-off in gasoline futures also pressured the crude complex.
ICE Brent for September delivery outperformed its American counterpart, establishing an intra-day low of $107.55/bbl, before settling at $108.15/bbl, up 8 cents. The negative trans-Atlantic Brent-WTI arbitrage widened, with the September arb closing at $1.21.
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