US crude swings $5.00/bbl on options expiration

Ignacio Sotolongo

16-Oct-2014

US crude swings $5.00/bbl on options expirationHOUSTON (ICIS)–NYMEX light sweet crude for November delivery experienced a high/low swing of $5.00/bbl during the Thursday session before settling at $82.70/bbl, up 92 cents.

West Texas Intermediate (WTI) reversed direction after hitting a low of $79.78/bbl, down $2.00 from the previous close, in response to the weekly supply statistics from the Energy Information Administration (EIA) showing a much greater than expected build in crude inventories.

The market focused on the EIA’s gasoline data showing stocks hitting the lowest level since 2012 and this helped lift the futures off intra-day lows.

After having posted substantial losses during the past three sessions, crude prices were in oversold territory and in need of a correction.

On crude options expiration day, the American benchmark spiked to the upside driven by investors covering positions and buy-stops were triggered as technical barriers were penetrated.

Upside momentum lifted the November WTI contract to hit $84.83/bbl, up $3.05, before the buying was exhausted and, in whipsawing action, a good portion of the gains were given back ahead of the closing bell.

The November ICE Brent contract, which went off the board at the end of the session, also experienced an upward correction, settling at $84.47/bbl, up 69 cents.  The about-to-become spot month December contract closed at $85.82/bbl, up $1.70.

READ MORE

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

Contact us

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?