U.S. crude hits two-month low ahead of U.S. inventory data

20-Jul-2016  
U.S. crude oil futures hit 2-month lows on Wednesday on technical selling pressure and liquidation by investors fearing a supply glut despite impending government crude inventory data likely to show a drawdown.

The front-month August contract CLQ6 for U.S. crude's West Texas Intermediate (WTI) futures was down 80 cents, or 1.8 percent, at $43.85 a barrel by 9:18 a.m. EDT (1318 GMT).The session low for the contract, which will expire after Wednesday's settlement, was $43.69. That was the lowest for a WTI front-month since May 10. It was also below the 100-day moving average of $43.85 for WTI.

Brent crude futures LCOc1 fell 55 cents, or 0.5 percent, to $46.11.

"It's technical selling on top of fear that we're once again headed into the territory of too much oil," said a broker.

The U.S. government's Energy Information Administration (EIA) will issue at 10:30 a.m. EDT (1430 GMT) crude stockpiles data for the week to July 15. Analysts polled by Reuters expect the EIA to announce a crude drawdown of 2.1 million barrels for last week. (by BARANI KRISHNA, Reuters)


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