31 Jul 2013
Oil breaks below $103 for first time in 3 weeks
FXstreet.com (Barcelona) - Oil broke below the $103 handle for the September futures contract on worse than expected US consumer confidence, printing a fresh 3-week low around $102.75, trading last at $103.13, while October contract is doing so at $102.43, showing a strong backwardation.
While the West Texas Intermediate closed Tuesday in NY down -1.36%, losing about the same for the week, Brent is down only -0.22% in same time period, making the brent:wtic spread to bounce back above 1.00 from way oversold lectures after several months of declines starting early March.
With plenty of risk events coming out later on including ADP, US GDP, crude oil inventories, and FOMC, volatility is likely to increase dramatically in next hours. According to Reuters, CL December 2013 contract is last trading at the 100 round big figure.
While the West Texas Intermediate closed Tuesday in NY down -1.36%, losing about the same for the week, Brent is down only -0.22% in same time period, making the brent:wtic spread to bounce back above 1.00 from way oversold lectures after several months of declines starting early March.
With plenty of risk events coming out later on including ADP, US GDP, crude oil inventories, and FOMC, volatility is likely to increase dramatically in next hours. According to Reuters, CL December 2013 contract is last trading at the 100 round big figure.