Commodity Blog

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Crude Oil & Natural Gas in Bear Mode

December 26, 2014 at 19:57 by Vladimir Vyun

The crude oil market returned to bearishness this week, and the decline continued today. Traders are concerned about oversupply due to refusal of the Organization of Petroleum Exporting Countries to cut supply and the expansion of US inventories. While oil attempted to reverse its bearish trend last week, the rally turned out to be short-lived. February contract for delivery of WTI crude oil dropped 1.81 percent to $54.83 per barrel as of 19:38 GMT on NYMEX today. Brent crude declined 1.29 percent to $59.46 per barrel on ICE.

Natural gas future also fell today due to forecasts of mild weather. With above-average temperatures, it is likely that gas usage will be limited, making traders unwilling to buy the commodity. In fact, some analysts even theorize that additional losses may trigger panic sell-off, driving prices even further down. January futures for natural gas slipped 1.22 percent to $2.99 per million British thermal units on NYMEX today.

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