Crude oil futures suffered a steep selling rout on Wednesday ahead of the expiry of the March contract and as the new April came on board.

Crude oil for March delivery lost $2.20 or 2.3% to settle at $94.46 a barrel on the New York Mercantile Exchange ahead of its expiry at the end of the Nymex trading session.

The new April front month contract skidded $1.88 or 1.9% to settle at $95.22 a barrel.

Analysts said selling was also prompted by reports that Saudi Arabia might increase oil production. Meanwhile a separate report said that the United Nations could offer to resolve the dispute over Iran's nuclear programme at talks scheduled for next week.

Oil prices reduced some losses after the release of minutes from the most recent Federal Reserve policy meeting. The minutes said that Fed officials planned to review its quantitative easing programme in March.

Otherwise traders are looking ahead to Thursday's weekly data on US oil inventories from the Energy Information Administration. It is released a day later than usual because of Monday's US holiday.

On the ICE futures exchange Brent crude for April delivery fell 1.9% at $115.30 a barrel.

Among precious metals gold prices tumbled below $1,600 after the Fed said it will review its quantitative easing programme in March.

Gold, which is traditionally seen as a hedge against inflation, fell for the fifth straight session on the increasing view that the central bank will end its bond-buying programme soon.

Gold for delivery in April fell $26.20 to settle at $1,578 an ounce.


CJ

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