Friday, February 27, 2015

There’s more to oil’s plunge than record-high supplies

Some blamed crude-oil’s decline Thursday on the record-high supplies in the U.S. But there is a little more to it than that.
True, the U.S. Energy Information Administration reported on Wednesday a seventh straight weekly climb in crude inventories to their “highest level for this time of year in at least the last 80 years.”
But prices for crude that day on the New York Mercantile Exchange actually rallied by 3.5%, with analysts considering whether prices have bottomed and fretting over the declines in petroleum-product stockpiles.
On Thursday, April crude CLJ5, +2.16%  on Nymex lost 5.5% to settle at $48.17 a barrel, its lowest settlement in nearly a month.
So why did prices fall?

http://www.marketwatch.com/story/theres-more-to-oils-thursday-plunge-than-record-high-supplies-2015-02-26?siteid=yhoof2 

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