Crude oil prices fell Wednesday, with the U.S. contract extending losses into a third day. Expectations of rising supply amid reduced demand put pressure on North American prices, while European Brent dipped along with other commodities that are retreating on worries about China's ongoing stability as a consumer. Brent crude for April delivery on London's ICE Futures exchange was down 66 cents, or 0.6%, at $107.89 a barrel. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April were down $1.38, or 1.4%, at $98.68 a barrel. As a result of the contracts' divergence, the price difference between the two contracts, known as the spread, is at its widest in a month. "Slowing China imports and rising U.S. stockpiles now more than offset whatever worry the market may have with regard to Ukraine," said Ole Hansen of Saxo Bank. He also noted that a very large speculative net-long position, or set of bets that the price of crude will rise, has built up over the past month in the U.S. "Below 100 [dollars per barrel for WTI] many of these positions have moved into loss-making territory," he said. Brent crude has been less shaken, with Libyan production outages continuing to tighten supply. The country's Prime Minister Ali Zeidan was removed from power after losing a vote of confidence in parliament. Recently, ICE's gasoil for April was down $7.25 at $899.75 a metric ton. Nymex gasoline for April delivery was down 210 points at $2.9460 a gallon.

Source