US WTI oil futures slid nearly 5 percent lower and back near $95 in a frantic sell-off yesterday after traders realised that the rally on Tuesday focusing on the possible closure of the Strait of Hormuz had no firm basis.
Latest WTI Oil Price
US Light crude oil futures for January 2012 delivery was trading at $95.56 a barrel, 07.40 GMT this morning in electronic trading on the NYMEX.
The US oil contract closed Wednesday’s session at $94.92 a barrel, or 4.8 percent lower.
Broad Commodity Sell Off
In the commodities markets, copper fell nearly 5 percent and gold tumbled about 3 percent, battered by the weaker euro and as the stronger US dollar nudged investors to trim holdings in a broad range of assets, including stock markets.
“Risk reduction has been a theme with investors looking to cut losses on the year and ahead of a choppy 2012, but losses today were compounded by the drop in physical commodities markets.” said Larry Jiang, chief investment strategist at Guotai Junan International Securities in Hong Kong.
US Crude Oil Inventories
Meanwhile, US crude oil inventories fell last week, US government data showed, but the data was basically in line with consensus estimates and will do little to change the bearish tone set by developments out of Europe.
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WTI crude oil price slides 5 percent, trading back at $95 a barrel
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