Oil Falls After US GDP Numbers

West Texas Intermediate and Brent crudes fell for a second day as the U.S. economy expanded at a slower pace in the fourth quarter than previously estimated.

Futures reduced monthly advances. Gross domestic product grew at a 2.4 percent annualized rate, compared with the 3.2 percent gain reported last month, revised figures from the Commerce Department showed. WTI has rallied more than 4 percent in February as supplies at Cushing, Oklahoma, dropped to a four-month low.

“The GDP report is weighing on the market,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “WTI is going to trade between $100 and $104 until we see proof of strong economic growth. Prices had gained primarily because of Cushing inventories.”

WTI for April delivery fell 36 cents, or 0.4 percent, to $102.04 a barrel at 9:24 a.m. on the New York Mercantile Exchange. The volume of all futures traded was 47 percent below the 100-day average. Prices are up 4.7 percent this month.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza