"Concerns over the strength of the global recovery, combined with a stronger dollar, have placed downward pressure on oil," according to analysts at Action Economics. Crude Oil Futures continue to plummet, today falling below $72 a barrel. The cause, mounting worry and concern about the global recovery pace.
In morning trading, The Dow Jones Industrial Average dropped over 100 points. While broader Indexes also saw a decline of over 1 percent. Investors are ditching oil stocks and going back into the safety of the Treasury bond market. The looming concern is that because of the slow recovery, which could push the economy back into a recession.
The Dow Jones slid 103.83 or 1 percent to 10,074.06. While The Standard and Poor 500 Index also declined to 11.60 or 1.1. percent to 1,055.76. The Nasdaq Composite Index dropped 25.52 or 1.2 percent bringing it to 1,786.79. For every one stock that rose on the New York Stock exchange, 10 fell.
Phil Flynn, PFG Best analyst said, "Just when it seems oil is going to rally on strong economic optimism, it gets crushed with the realty of gluttonous supply. When it gets ready to fall apart, like in the emergence of the latest chapter in the economic crisis, some central bank supports it with a flood of printed money."
Showing posts with label Oil Futures Trading. Show all posts
Showing posts with label Oil Futures Trading. Show all posts
Tuesday, August 24, 2010
Monday, August 23, 2010
Oil Futures Trading Taking A Nose Dive: Not Expected To Rebound
There has been much concern about the slowing demand and rising inventory of crude oil. Despite this concern, crude oil futures saw a slight gain today. It's going to become more difficult for these gains to continue though, because the U.S. demand is beginning its yearly decline.
On the New York Merchantile Exchange, the crude has traded for October delivery at 24 cents, or 0.3 percent to $74.06 a barrel. There were numerous traders who had hoped to see an incline in gasoline consumption, but that did not happen. Investors fear continues to mount as it's becoming clear that the annual Fall decline will be even more pronounced.
Earlier this month, several money managers including Hedge funds, took speculative positions on the increasing oil prices which topped almost $80 a barrel. According to the Commodity Futures Trading Commission, these money managers have now changed their tune and are leading the way out of the oil market all together.
Analysts from Societe Generale wrote, "The bottom line is that even though recent actual demand figures from key countries such as the U.S. and China remain healthy, high inventories are unambiguously bearish."
On the New York Merchantile Exchange, the crude has traded for October delivery at 24 cents, or 0.3 percent to $74.06 a barrel. There were numerous traders who had hoped to see an incline in gasoline consumption, but that did not happen. Investors fear continues to mount as it's becoming clear that the annual Fall decline will be even more pronounced.
Earlier this month, several money managers including Hedge funds, took speculative positions on the increasing oil prices which topped almost $80 a barrel. According to the Commodity Futures Trading Commission, these money managers have now changed their tune and are leading the way out of the oil market all together.
Analysts from Societe Generale wrote, "The bottom line is that even though recent actual demand figures from key countries such as the U.S. and China remain healthy, high inventories are unambiguously bearish."
Thursday, August 19, 2010
Oil Futures Trading Plummets: BP (NYSE:BP)
After watching the oil futures trading market rise over the last few weeks, it has once again plummeted as BP (NYSE:BP) is still uncertain on their final bottom kill attempt. This once again leads to much uncertainty for oil futures.
Oil futures traded at their lowest in a month. The primary concern is that the recovery isn't durable enough to bring down the excessive fuel inventories in the U.S. Yesterday in New York, oil futures dropped 35 cents or 0.5 percent to $75.42, this is the lowest since August 16th.
Crude oil for September delivery declined 29 cents or 0.9 percent to $75.13 a barrel.
The crude oil stockpiles lost 818,000 barrels to 354.2 million barrels, according to the Energy Department. A Bloomsberg News Survey showed it was expected to lose almost 1 million barrels.
Hussein Allidina, head of commodities research at Morgan Stanley said, that the economic growth in China as well as other emerging markets will push crude up to over $100 a barrel by next year.
Oil futures traded at their lowest in a month. The primary concern is that the recovery isn't durable enough to bring down the excessive fuel inventories in the U.S. Yesterday in New York, oil futures dropped 35 cents or 0.5 percent to $75.42, this is the lowest since August 16th.
Crude oil for September delivery declined 29 cents or 0.9 percent to $75.13 a barrel.
The crude oil stockpiles lost 818,000 barrels to 354.2 million barrels, according to the Energy Department. A Bloomsberg News Survey showed it was expected to lose almost 1 million barrels.
Hussein Allidina, head of commodities research at Morgan Stanley said, that the economic growth in China as well as other emerging markets will push crude up to over $100 a barrel by next year.
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