Wed, 18 Aug 2010 16:47:00 +0200

Oil tumbles below $74.00, EIA data slightly improved

FXstreet.com (Barcelona) - Crude Oil contract for September delivery is on a free-fall, after falling more than 2% on Wednesday. Energy prices in general are suffering a substantial sell-off, as investors are skeptic to believe the situation on energy consumption may get any better in the short term.

Oil quotes hit a new 1-month low at $73.98, to presently remain two quarters of a buck above $74.00, after the EIA just released its weekly stock change in Crude, showing a mild improvement, with inventories dropping by -0.8M barrels vs 1M expected through the period August 9-13.

Nonetheless, the renewed flurry of downside activity seems to be solidly supported on the assumption US builds are poised to keep increasing, on the back of yesterday's numbers “showing Gasoline stocks rose 2 M barrels compared with forecasts for a 100,000 barrel decline, while distillates including diesel rose 2.1 million barrels, topping predictions for a 1.5 million barrel gain” said the Amplify Trading team.