Energy commodities tumbled on Wednesday as BoJ stimulus measures failed to provide strong support for the commodity group. Elevated inventory levels in the US as well as potential increase in supplies form Libya, Russia and Saudi Arabia created heavy pressure on energy prices.
Crude oil plunged after the EIA reported that US crude oil inventories climbed 8.5 million barrels last week compared to forecasts of a one-million-barrel increase.
Brent oil slumped after Turkey's energy minister announced that he was talking with Saudi Arabia, Russia and Libya about increasing output to compensate shortfall caused by Iranian oil embargo.
Natural gas was bullish during the US morning session; however, anticipation of the US natural gas inventory report and cooler weather forecasts erased early gains of the commodity.
Heating oil dropped despite a 0.3-million-barrel fall in the US distillate fuel inventories last week. At the moment, US distillate fuel inventories remain close to the lower limit of the average range for this year period.