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      Crude prices slump on eased supply fears

      2014-08-20 08:52 Xinhua Web Editor: Qin Dexing
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      Crude prices plunged Tuesday on eased fears over oil supply as Kurdish and Iraqi forces regained control of Iraq's largest dam and Ukrainian government forces advanced on pro-Russian rebels.

      Iraqi forces regained control of Iraq's largest dam from Islamic State militants with the air support from the U.S Tuesday.

      Tensions in the market are fading on signs that crude production from southern Iraq has not been disrupted. Iraq is the second largest crude producer in the Organization of Petroleum Exporting Countries.

      Reports said Ukrainian government forces have taken control of one of four districts of Luhansk from the pro-Russian separatists and are fighting in the city.

      U.S. crude price plummeted more as the September futures expire Wednesday. Traders who don't need the physical barrels sold their positions.

      Energy Information Administration is scheduled to release Wednesday crude inventories for last week. Markets expected that U. S. crude stockpiles probably fell 1.75 million barrels last week.

      Light, sweet crude for September delivery moved down 1.93 dollars to settle at 94.48 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for October delivery lost 4 cents to close at 101.56 dollars a barrel.

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