The move lower likely accelerated in tandem with several selling programs, causing a vicious cycle, said Daniel Ghali, senior commodity strategist at TD Securities. The price slump comes as crude supplies remain robust despite OPEC+ supply cuts and reduced Russian exports.
West Texas Intermediate sank 4.9 per cent to settle below $US73 after a report on Wednesday showed rising US stockpiles and the grade breached its 200-day moving average. Oil plummeted to the lowest since July as trend-following trades accelerated losses that were kicked off by swelling inventories and the failure of key technical support levels.īrent crude slid by 4.6 per cent to settle below $US78 a barrel after algorithm-driven traders dumped crude holdings when prices dipped under $80 a barrel.
