Investing.com - Financial Markets Worldwide
🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

WTI crude, Brent oil futures turn negative in volatile trade

Published 01/08/2015, 09:51 AM
© Reuters. Crude oil futures turn lower in choppy trade
DX
-
LCO
-
CL
-

Investing.com - West Texas Intermediate and Brent oil future turned lower in choppy trade on Thursday, as investors continued to focus on a glut in global supplies.

On the New York Mercantile Exchange, crude oil for delivery in February dipped 4 cents, or 0.08%, to trade at $48.61 a barrel during U.S. morning hours, after hitting a daily peak of $49.64.

A day earlier, WTI oil fell to $46.83, the weakest level since April 2009, before turning higher to end at $48.65, up 72 cents, or 1.5%, after data showed that oil supplies in the U.S. fell unexpectedly last week.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for February delivery hit a session high of $51.90 a barrel, before turning lower to trade at $50.99, down 17 cents, or 0.32%.

On Wednesday, London-traded Brent prices tumbled to $49.66, a level not seen since May 2009, before recovering to settle at $51.15, up 5 cents, or 0.1%.

The US dollar index, which measures the greenback against a basket of six major currencies, climbed to a 12-year high, boosted by the diverging policy outlook between the Federal Reserve and central banks in Europe and Japan.

Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.

London-traded Brent prices lost nearly 48% in 2014, while WTI futures dropped almost 46% after the Organization of Petroleum Exporting Countries decided to maintain its output target at 30 million barrels a day.

The decision disappointed hopes the oil cartel would lower production to support the market, as a surplus develops amid the shale boom in the U.S., which is pumping at the fastest pace in more than 30 years.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.