NYMEX light oil price ends Thursday trading at eight week low

US light crude oil futures settled at the lowest level in eight weeks on Thursday as weak home sales suggested a slow economic recovery and added to demand worries following a government report on Wednesday of a surprise large increase in oil supply.

“Oil broke under $66 and triggered some sell stops,” said Tom Bentz, analyst at BNP Paribas Commodity Futures in New York. US equities fell on the August existing home sales data, even as new weekly claims for jobless benefits dropped, and investors worried that authorities might be curbing stimulus efforts too soon.

The US dollar rose against the Euro after central banks said they would scale back some emergency lending programs in light of improved economic conditions.

On NYMEX front month November crude CLX9 settled down $3.08, or 4.47 percent, at $65.89 a barrel, the lowest settlement since July 29, when front month crude closed at $63.35. It ranged from $68.77 to a low of $65.60, the weakest intraday price since $65.23 on Aug. 17.

In London, November ICE Brent crude LCOX9 ended down $3.17, or 4.66 percent, at $64.82 a barrel, the lowest close since July 16′s $62.75. It traded from $64.58, lowest intraday price since July 17′s $62.81, to $67.98.

Tags:  light oil prices, NYMEX