Crude oil futures slumped to a new seven month low on Wednesday but later recovered as traders changed positions ahead of the June contract’s expiry and after a mixed report on US supplies. Crude for June delivery rose 46 cents to settle at $69.87 a barrel on Wednesday. The contract, which expires Thursday, earlier fell to a low of $68 a barrel.
Oil prices have fallen sharply since May’s high of $87.15 a barrel on concern about Europe’s debt problems and how that could derail economic recovery and stifle demand for oil.
Meanwhile the US Energy Information Administration revealed a mixed report on oil supplies last week.
Crude stockpiles rose by 200,000 barrels from the previous week, less than expectations of an increase of around 950,000 barrels. Gasoline stocks however dropped by 300,000 barrels, despite forecasts of a 450,000 barrel decline. Distillates, used in heating fuel, fell by 1m barrels.
Among precious metals gold for June delivery fell $21.50 to settle at $1,193.10 per ounce as bullion traders paused for breath and as the euro gained ground against the dollar. The yellow metal traded between $1186.60 and $1228.20 per ounce.
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