Oil futures took a dive on Wednesday, as continued concerns about the glut of crude pushed the February West Texas Intermediate crude contract below $27 a barrel to its lowest settlement in nearly 13 years. “Some walking wounded bottom pickers continue to try and catch a falling knife,” said John Macaluso, an analyst at Tyche Capital Advisors.
“In market environments like this, the trend is your friend—and until there [are] any disruptions in supplies, we are looking at a lower oil for longer,” he said.
On the New York Mercantile Exchange, February WTI crude which expired at Wednesday’s settlement, fell $1.91, or 6.7%, to finish at $26.55 a barrel. That was the lowest settlement for a front-month contract since May 7, 2003, according to Dow Jones.
March crude which is now the front-month contract, dropped $1.22, or 4.1%, to $28.35 a barrel.