Crude Oil Futures Drop to 7-Month Lows, Could Fall Further

Crude Oil Futures continue to decline on broader financial market difficulties, and the NYMEX WTI contract now trades at fresh 7-month lows through afternoon trading. A further breakdown in front-month WTI prices could open up further declines in crude prices—especially if the US dollar is able to recover its very recent declines.

Key event risk for Crude Oil will certainly make for continued volatility in the NYMEX contract, as tomorrow brings the typically market-moving Department of Energy Crude and Distillates Inventories releases. Markets will certainly react to any surprises in said releases—especially if inventory numbers show a larger-than-expected drawdown in crude supplies.

                                      [B]Country[/B]
                                   [B]Day[/B]
                                   [B]Release[/B]
                                   [B]Expected[/B]
                                                     US
                                   Sep 17
                                   US Crude Inventories (AUG 12)
                                   -3350K
                                                     US
                                   Sep 17
                                   US Gasoline Inventories (AUG 12)
                                   -3500K
                                                     US
                                   Sep 17
                                   US Distillate Inventory (AUG 12)
                                   -1800K