West Texas Intermediate fell as a technical
indicator shows last week’s increase to the highest price in nine months was
excessive. Futures slid as much as 0.4 percent in New York. WTI’s relative
strength index closed above 70 for a third day yesterday, signaling prices rose
too quickly to sustain further gains. Iraq’s army pummeled the positions
of Sunni Muslim insurgents who have captured large chunks of territory in the
country’s north as the U.S. weighed a military intervention to help the
government. WTI for July delivery fell as much as 46 cents to $106.44 a barrel
in electronic trading on the New York Mercantile Exchange and was at $106.54 at
4 p.m. Sydney time. The contract lost 1 cent yesterday after ending last week’s
trading at $106.91, the highest close for the front month since Sept. 18.
The
volume of all futures traded was about 4% above the 100-day average. Prices are
up 8.3% this year. In the U.S., crude inventories probably shrank by 750,000
barrels in the week ended June 13, according to the projections before
an EIA report tomorrow. Supplies decreased the prior two weeks to
386.9 million barrels, according to the Energy Department’s statistical arm. Gasoline
stockpiles slid by 550K barrels last week while distillates, including
heating oil and diesel, expanded by 350K barrels, expectations said. The
industry-funded American Petroleum Institute in Washington is
scheduled to release its own supply data today.
To read more visit our website, WWW.ICMBrokers.com
No comments:
Post a Comment