Crude Oil Falls Amid Profit Taking
Crude oil prices fell on Tuesday as traders took profit following a 4 percent bounce in the previous session as conflicting market signals tore at prices.
Traders also focused on the soon-to-expire front-month contract in the West Texas Intermediate (WTI), which serves as the U.S. benchmark. WTI’s October contract will go off the NYMEX board after Tuesday’s settlement, and November will move up as the front-month.
U.S. West Texas Intermediate (WTI) crude futures were trading at $46.20 per barrel at 2100 EDT, down 48 cents, or one percent, from their last settlement. Globally traded Brent futures were at $48.47 per barrel, down 45 cents.
The dip in prices came after oil rallied on Monday, with U.S crude surging more than 4 percent on signs of declining stockpiles and a fall in drilling activity, which implies lower future oil production.
Technical market indicators pointed towards further price increases, with Reuters analyst Wang Tao seeing Brent rise to $49.70 per barrel based on Fibonacci retracement indicators while WTI could edge up to $47.78 a barrel.