Oil Futures Drop to $56 / Barrel – Gasoline $1.32 Gallon / Global Stocks Down

Dated Brent Spot

56.10

-1.59

-2.76

07:08

Nymex Crude Future

59.68

-2.73

-4.37

06:38

http://www.bloomberg.com/markets/commodities/energyprices.html

S&P 500

-14.90

906.60

11/11 7:16am

 

Fair Value

 

917.80

11/10 10:17pm

Difference*

 

-11.20

 

NASDAQ

-17.50

1239.00

11/11 7:08am

 

Fair Value

 

1251.68

11/10 10:17pm

Difference*

 

-12.68

 

Dow Jones

-142.00

8745.00

11/11 7:11am

DJIA Contracts

FTSE 100

-108.08

-2.45%

4,295.84

XETRA-DAX

-136.22

-2.71%

4,889.31

CAC 40

-103.67

-2.96%

3,402.08

HANG SENG

-703.73

-4.77%

14,040.90

NIKKEI 225

-272.13

-3.00%

8,809.30

 

U.S. Dollar vs Euro

-0.0048

-0.38%

1.2701

 

U.S. Dollar vs Yen

-0.1300

-0.13%

0.0102

 

U.S. Dollar vs UK £

-0.01

-0.54%

1.5

http://money.cnn.com/data/premarket/index.html

“The oil market is coming down into line with demand expectations,” said Simon Wardell, oil analyst at Global Insight in London.

“There’s more downside weakness here than upside strength. We are expecting prices to go lower before they go higher with U.S. crude hitting $50 before its reaches $65 again.”  

Oil has shed 60 percent of its value since hitting a record high $147 in July.  http://news.yahoo.com/s/ap/20081110/ap_on_bi_ge/oil_prices_11

The run up in Oil during the 6 months that preceeded the election had little to do with demand and consumption. Oil demand and supplies had only incresed slightly prior to the run up. Oil producing countries had “excess” capacity prior to the run up. (They had the ability to pump more oil as demand rose).

Opec sets oil production levels to obtain a predictable price range.

OPEC President Chakib Khelil said the oil producers’ target prices for was $70 to $90 per barrel. http://economie.moldova.org/stiri/eng/163913/  

A significant factor in the post election run up of crude oil prices was financial speculation.

“We still have this connection between the oil market, the equity markets and the currency markets,” Ritterbusch said. Crude is bought and sold in dollars, and when the dollar falls against foreign currencies, investors often sell the U.S. currency and buy oil. Oil prices are also experiencing some spillover from the equity markets, in which any significant rise “conjures up images of a softer economic landing,” Ritterbusch said.  http://news.yahoo.com/s/ap/20081110/ap_on_bi_ge/oil_prices_11

Oil prices have fallen about 56 percent since reaching a record $147.27 in mid-July, and that’s provided some good news for U.S. motorists. In Tulsa, Okla., at least one station was selling regular gasoline for $1.79 and there were a handful of states where the average price of gasoline fell below $2.

http://news.yahoo.com/s/ap/20081110/ap_on_bi_ge/oil_prices_11

 

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