Crude oil pares gains on commodity index, as supplies surge

Crude oil fell into negative territory on the Asian commodities market today amid repeated projections of mounting stockpiles in Cushing, Oklahoma in the U.S. Futures retreated significantly after coming close to breaking pas the resistant $100 per barrel threshold on the commodity index midday yesterday.

West Texas Intermediate crude oil futures for delivery in December lost 18 cents and settled at $99.19 per barrel in electronic trading on the New York Mercantile Exchange. The U.S. benchmark commodity futures touched as high as $99.87 per barrel during intraday trading yesterday, making for its most impressive midday settlement in more than three months.

Brent commodity prices for December settlement lost a nominal 4 cents to settle at $112.14 per barrel on the ICE Futures Exchange in London. The European contract saw some of its damage be offset by the ongoing Iran-U.S. disputes in the Middle East concerning Tehran’s nuclear program. Iran represents one of OPEC’s most active crude suppliers and its prolonged absence from the commodity index will likely continue to bolster Brent on the sector charts.

WTI futures also fell due to minor profit-taking that took place on the market after the commodity surged late yesterday. The primary affecting factor for crude remains the debt crisis in Europe. The region’s most recent main culprits are Italy and Spain. The former’s bond yields have now reached default levels, surging past 7%, a number that even an economically healthy nation would fail to sustain, while Spain’s debt risk premiums are causing investors to shy away from the rapidly crumbling country.

Analysts are torn with their forecasts for the oil commodity futures. Though optimistic economic data in the U.S. and Asia continue to create bullish behaviour on the charts, without long term resolution for Europe, crude oil’s recently rallied leads runt the chance of collapsing under euro-strain.