Oil Prices - August 20

[dan_s]

October Crude Oil prices moved mostly lower during Tuesday's session, ultimately ending at a new six day low. The market pared a portion of its early deficit during the US morning hours, perhaps from a rally in US equity markets. October Crude Oil sold off sharply during the final hour of trade, more than $2 from the session's high to a new low for the day. Some traders indicated that pressure might have also been long-liquidation selling pressure after recent gains and ahead of tomorrow's FOMC meeting minutes. It is possible that some of the weakness also came from a short-squeeze in the expiring September WTI contract, as well as reports of reduced oil flows coming out of Cushing Oklahoma. Expectations for tomorrow's EIA inventory report are for a draw in US crude oil supply of around 1.5 to 1.75 million barrels.