Crude oil fell from near to two months high on unreasonable price gain. WTI contract for March delivery reached to $101.38 after the release of inventory data but there was seen sudden fall in price as the level was not sustainable. At Asian markets WTI fell by 0.62% to $99.76 at 0720 GMT.
The commodity gained almost 4.95% in this month as traders were expecting fall in distillate stockpile. Yesterday according to Energy Information Administration distillates stockpile fell by 1.865 million barrels little lower than previous fall of 2.360m while crude oil inventory increased by 3.3 million barrels from previous 0.4m.
There is no strong demand existing in the market that can further push prices. Increasing oil production at U.S. and gulf countries with softening global growth may pressurize oil prices on downside. Demand from emerging economies also likely to fall this year as growth pace is expected to be slower than last year.
WTI may find support near to $98.5 as low prices may increase import from large oil importing countries.
In other energy commodities Brent fell by 0.35% to $108.41, Natural Gas gained by 2.65% to $4.95 and Gasoline dropped by 0.22% to $275.71.