Crude-oil futures settled below $100 a barrel Wednesday, and gasoline plunged nearly 8%, after the CME Group briefly halted trading in New York and raised daily trading limits for certain energy contracts.
The CME’s actions exacerbated weakness among energy futures in the wake of a bigger-than-expected increase in U.S. oil inventories.
“Lots of eyes were focused on any slight jump in [U.S.] fuel inventories. They got it and assumed the bull’s kaput,” said Richard Hastings, a macro strategist at Global Hunter Securities. “The resulting move in price was big enough to get the CME to halt trading, which only worsens the extreme views.”
Full story: Oil falls below $100; gasoline sinks nearly 8%