August Nymex WTI prices are trading in negative territory Thursday extending their sharp declines from the previous session. WTI prices remain pressured by an unexpected rise in crude inventories last week and the Federal Reserve’s announcement of an extension of operation twist. The biggest negative reaction to the FOMC announcement came from the oil market, which had been crying out for more aggressive stimulus measures from the Fed. Prices were in freefall with August WTI slumping by $2.90, 3.4%, to end the session at $81.45 a barrel. WTI prices were also under additional pressure from an unexpected rise in U.S. commercial oil inventories. U.S. crude oil stockpiles rose last week by 2.86mln barrels, defying forecasts for a 1.1mln barrel decline, according to data released from the U.S. Energy Information Administration (EIA). That was the highest level seen since July 1990, reversing two weeks of falling stockpiles, amid falling demand from the world’s largest consumer. WTI prices initially touched highs of $81.18 in Asia, extending losses to $80.14, now trading $80.36 down $1.09.
EasyForexNews Research Team