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US crude futures slide $2.53/bbl on ceasefire hopes

ICIS News : 20-Nov-12 20:58

HOUSTON (ICIS)--NYMEX light sweet crude (WTI) for January delivery settled at $86.75/bbl, down $2.53, on Tuesday in response to unconfirmed reports of a cease-fire between Israel and Palestinian Hamas, which could become a wider conflict and impact crude supplies from the region.

The stock market had risen early on but reversed direction following a warning by the Federal Reserve chairman about potential economic damage if a bipartisan agreement on the budget is not reached.

January WTI reversed from two days of strong gains and broke through technical support barriers, triggering sell stops.

Downside momentum drove front month WTI down to hit $86.17/bbl, down $3.11, before rebounding.

January ICE Brent established an intra-day low of $109.01 and settled at $109.83, down $1.87.

By Ignacio Sotolongo
+1 713 525 2653

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