October Nymex WTI prices are trading in negative territory Tuesday extending their sharp declines seen during the previous session. October WTI ended Monday’s session $2.28 lower, or 2.4%, at $96.62 a barrel, after a sharp sell off that has prompted an investigation by US regulators. WTI slumped to $94.65 a barrel on Nymex, from above $98, with some 12,500 contracts trading in one minute. There was some talk about a possible crude oil “flash crash,” and new rumours about a SPR release, though neither were ever confirmed. The Commodity Futures Trading Commission are reported to be “looking into” the price plunge that also took $5 off of Brent crude futures. There was also talk of a trading algorithm unwinding into the market, but nothing has been confirmed as of yet. This morning, prices recovered to $97.23 a barrel during Asian traded hours but have since slipped back to trade a session low of $96.38, with WTI now currently trading $96.48 a barrel, down 14 cents on the session.
EasyForexNews Research Team