Crude oil futures continued plummeting down the commodity index today, marking the fourth straight day the fuel is spending in the red. Traders raced to sell off their shares of crude as France’s election results hit the sector, with oil investment tumbling as a result. Greece’s election has also affected the commodity negatively, as economists questioned whether the nation’s new governments would continue the austerity measures needed to bring the region back from the depths of debt crisis.
Trouble for crude oil continued on the domestic front, where Cushing stockpiles still stand at their highest peak in 22 years. With demand rebounding at a much slower pace than the mounting supplies, oil investment seems positioned for a prolonged fall on the charts.
Traders and economists alike speculated that now was a bad time to invest in oil, as Sarkozy was ousted from the French office, casting shadows of doubt on whether the new Socialist state would continue to uphold the austerity deals struck with the West.
West Texas Intermediate crude oil prices for delivery in June fell 82 cents to $97.67 per barrel in NYMEX markets. The American benchmark has now lost nearly $8 in just three trading sessions.
Brent investments mirrored the hardships of WTI, tumbling 44 cents to $112.73 per barrel on the ICE Exchange in London.
With WTI falling below the resistant $100 per barrel mark, the commodity’s future is again in serious question. Unless, the supply surplus in Cushing is resolved in the near future, WTI’s slide down the polls will go ahead at the same dizzyingly rapid pace, making oil investment across the West a questionable affair.
By: Chris Termeer