US crude futures slide $1.20/bbl on Iran's proposal

15 October 2013 21:39  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude (WTI) for November delivery fell sharply on Tuesday, settling at $101.21/bbl, down $1.20, on cautious optimism that an Iranian proposal to negotiate its nuclear programme with various Western powers could ease geopolitical tensions and allow more oil into the market.

Disappointment over Washington’s inability to end the government shutdown and raise the debt limit pressured the stock market, as well as various commodities.

Crude futures also responded to the US dollar firming against a basket of currencies, which makes dollar denominated commodities more expensive.

The market will be waiting for direction from the weekly supply statistics from the American Petroleum Institute (API), which will be released later on Tuesday.

Due to the government shutdown, the Energy Information Administration (EIA) will not release the weekly inventory data on Wednesday.

November WTI hit an intra-day low of $101.11, down $1.30, during the normal floor session before staging a rebound ahead of the closing bell but extended the losses in electronic trading afterwards to hit $100.91/bbl.

ICE Brent for November delivery established a low of $109.53/bbl and settled at $109.96/bbl, down $1.08.

By: Ignacio Sotolongo
+1 713 525 2653

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