What's Moving the Oil Markets?

What's Moving the Oil Markets?

•Global crude futures continued Thursday's sharp sell-off on Friday as hedge funds continued to sell, with prices being driven down with the NYMEX front-month WTI expiry and bearish natural gas stocks, brokers said.

•Late Thursday, a build in US natural gas stocks as well as the impending December NYMEX WTI futures expiry pushed prices lower. As prices for December WTI fell through the $58.50 level, fund selling stops kicked in, pushing prices significantly lower, brokers said. "Funds are continuing to sell the futures again this morning. It was a really big drop on Thursday and it will probably keep going although there maybe a little dip buying here and there," a London-based broker said.

•Prices were pulled lower as the US Energy Information Administration reported a 5 Bcf build in US gas stocks, in line with expectations. This comes amid continuing mild weather in the US, although this is forecast to change in the upcoming week, as well as healthy heating oil stocks in both Europe and the US.

Updated: 11/16/07

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