Something Just Spooked Crude

Crude prices just plunged 1.1%.

This is a strange development, since the EIA just reported supplies of U.S. crude declined 3.4 million barrels this week, which would suggest prices should rise.

Instead, West Texas Intermediate contracts fell to as low as $US102.60 from $US103.64, according to Investing.com.

RANSquawk suggests it may have had something to do with Ukraine’s new government announcing decentralization of powers, meaning supplies will be less subject to government fiat.

Prices have since come back up a bit.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.