Crude Oil Plunges on Increased Supply

Crude Oil futures declined on Thursday and reached their lowest level since February. The main reason behind the decline was latest inventories data which increased more than expectations. The Energy Information Administration reported the increase of 44 billion cubic feet for the natural gas inventories as compared to forecasted increase of 32 billion cubic feet.

Natural gas futures contract for September delivery fell 3.6 percent or $0.15 to $3.94 per million British thermal units.

Crude oil futures contract for September delivery dropped $5.30 to settle at $86.63 per barrel on New York Mercantile Exchange. The respective contract has dropped more than 11 percent since last Thursday.

Gasoline futures contract for September delivery declined 6.6 percent or $0.19 to $2.74 per gallon while heating oil futures contract for September delivery dropped 4.1 percent or $0.13 to $2.89 per gallon.

Investors were also disappointed form the latest US economic data which resulted in more selling pressure of commodities. As per latest data of US Labor Department, initial jobless claims stood at 400,000 for the last week reporting no change as compared to prior week.

Among other commodities, gold futures contract for December delivery also declined 0.4 percent or $7.30 to $1,659 per ounce at Comex trading of New York Mercantile Exchange.


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