“West Texas Intermediate fell, extending the biggest drop in two weeks, while Brent was little changed. The North Sea crude may be capped at $140 a barrel this year, according to Bank of America Merrill Lynch.
Futures lost as much as 0.6 percent, after sliding 1.5 percent Feb. 15, the most since Feb. 4. Floor trading in New York was closed yesterday because of a holiday in the U.S. Brent will trade in a range of $100 to $130 a barrel through to 2015, according to Francisco Blanch, head of commodities research at Bank of America Merrill Lynch. A technical indicator signaled price declines may accelerate.
“The market is trying to decide whether we are just testing support or whether we are facing what many are saying is a long-overdue correction,” Ole Hansen, the head of commodity strategy at Saxo Bank A/S in Copenhagen, said today in a telephone interview.
WTI for March delivery, which expires tomorrow, slid as much as 61 cents to $95.25 a barrel in electronic trading on the New York Mercantile Exchange and was at $95.40 at 4:04 p.m. Dubai time. The more-active April contract dropped 54 cents to $95.87. Yesterday’s transactions will be booked with today’s trades for settlement.
