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WTI oil futures drop from 9-week high in volatile trade

Published 12/30/2013, 09:00 AM
U.S. oil prices turn lower in year-end trade
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Investing.com - U.S. oil futures turned lower on Monday, as market players cashed out of the market to lock in gains from a recent rally which took prices to a nine-week high in the previous session.

On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in February traded at USD99.88 a barrel during U.S. morning trade, down 0.45%. New York-traded oil futures held in a range between USD99.62 a barrel and USD100.43 a barrel.

The February contract rallied to USD100.75 a barrel on Friday, the highest since October 21, before pulling back to settle at USD100.32, up 0.77%.

Nymex oil futures were likely to find support at USD99.06 a barrel, the low from December 26 and resistance at USD100.75 a barrel, the high from December 27.

Trading volumes were thin as many investors already closed books before the end of the year, reducing liquidity in the market and increasing volatility, which helped exaggerate market moves.

Market players looked ahead to the release of U.S. pending home sales data later in the day to gauge the economic strength of the world’s largest oil consuming nation.

U.S. crude futures, also known as West Texas Intermediate or WTI, have been well-supported in recent weeks amid indications the U.S. economy is gaining momentum.

Prices have gained approximately 9% in 2013, set for a fourth annual increase in five years.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for February delivery fell 0.75% to trade at USD111.33 a barrel, while the spread between the Brent and U.S. crude contracts stood at USD11.45 a barrel.

London-traded Brent prices rallied to a three-week high of USD112.78 a barrel on Friday, amid ongoing concerns over a disruption to supplies from Libya and South Sudan.

The European benchmark is on track for a 1% advance in 2013.

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