CLF9 fell $2.35, or 6.49 percent, to settle at $33.87
NEW YORK, Dec 19 - U.S. crude oil futures ended
more than 6 percent lower on Friday in volatile trading as the
expiring front-month January contract was pressured by the weak
economy that has slowed demand and brimming storage.
The February crude contract finished slightly higher after
also seeing volatile trading as the premium to January crude
widened to a record intraday.
"The January contract seems to be encompassing all the
bearish news that has been weighing on crude. This week's big
EIA reported build in Cushing, all the excess storage that has
been widely reported, and too-late OPEC deal and lack of
confidence in it," said Tom Bentz, analyst at BNP Paribas.
January refined products futures ended higher.
"The market is signaling that it is taking a look at the
OPEC cut and recognizing that is more likely to be evident in
February. The Feb contract has not been able to crack $40 yet,
but if inventories and refinery use continue to drop then
pressure will resume," said Gene McGillian, analyst at
Tradition Energy in Stamford, Connecticut.
OPEC agreed to cut 2.2 million barrels per day from January
on Wednesday, the same day a government report showed U.S. oil
inventories rose last week.
On the New York Mercantile Exchange, expiring January
crude CLF9 fell $2.35, or 6.49 percent, to settle at $33.87
a barrel, the lowest settlement for front-month crude since Feb.
10, 2004 when it ended at the same level.
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