September Nymex WTI prices have slipped back into negative territory Thursday, pressured by some moderate risk aversion and some profit taking after two days of gains. September futures, on the Nymex Exchange, ended Wednesday’s session 47 cents higher at $88.97 a barrel. Supply news saw crude inventories climb by 2.7mln barrels last week, the first gain posted in five weeks, according to data published by the US Energy Information Administration (EIA). The reading defied previous forecasts for a modest drawdown of around 1mln barrels. WTI prices reversed back sharply yesterday afternoon after weaker than expected US homes sales data increased the probability that the Federal Reserve would have to adopt more quantitative easing to support the US economy. Prices had slumped to session lows of $86.85 before a vicious spike saw WTI hit $89.35 into the evening. In Asia this morning, prices have corrected back from highs of $89.10 a barrel to trade down to an intra-day low of $88.38, with WTI still currently in modest corrective mode trading $88.51 a barrel, down 46 cents from the NY close.
EasyForexNews Research Team