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MTECHTIPS:- Crude oil futures fall more than $2 after historic rally

MTECHTIPS:- Crude oil futures fall more than $2 after historic rally

Oil futures pulled back on Tuesday, as traders cashed out of the market to lock in gains after prices soared almost $10 a barrel over the past three sessions, the biggest three-day surge since 1990. On the ICE Futures Exchange in London, Brent oil for October delivery plunged $2.27, or 4.18%, to trade at $51.89 a barrel during U.S. morning hours. Brent futures rallied to $53.09 on Monday, the strongest level since July 30, before closing at $52.27, up $4.10, or 8.19%. Brent prices are up nearly 25%, or almost $9, over the past three sessions as traders returned to the market to close out bets on lower prices, a move known as short-covering. Prices hit six-year lows of $42.23 on August 24. Elsewhere, crude oil for delivery in October on the New York Mercantile Exchange dropped $2.00, or 4.07%, to trade at $47.20 a barrel. On Monday, Nymex oil prices jumped to $49.33, the most since July 30, before ending at $49.20, up $3.98, or 8.8%. New York-traded oil futures advanced 26.2%, or $9, since last Thursday. Futures sank to $37.75 on August 24, a level not seen since February 2009. Monday’s gains came amid downwardly revised estimates on U.S. output along with signals that OPEC could be willing to meet with its member states from emerging markets to develop a strategy in order to address crashing energy prices. Crude oil prices have been under heavy selling pressure in recent months amid concerns over a growing glut in world markets.

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