A sharp sell-off in the oil market weighs on market sentiment

Thursday, December 11, 2014

Crude oil prices continue their sharp downside momentum. Brent front month futures plunged below $64/barrel yesterday to reach a low at $63.56 per barrel before settling at $64.24. WTI front month futures extended sharp declines yesterday and hit a low at $60.43 to finish the trading session at $60.94. The weekly EIA oil inventories report was fairly bearish yesterday after showing ongoing builds in crude oil inventories. Furthermore, gasoline stocks rose unexpectedly 8.19 million barrels and distillate stocks rose 5.57 million barrels, verifying signs of lack of oil demand.    

WTI front month futures retreat towards $60/barrel

CLF5 Comdty (WTI CRUDE FUTURE  J 2014-12-11 08-50-42

Brent front month futures retest $63/barrel

COF5 Comdty (BRENT CRUDE FUTR  J 2014-12-11 08-51-04

US equity markets plunged in yesterday trading session with the Dow Jones index falling sharply over 260 points (-1.5%) towards 17,500. The S&P 500 and Nasdaq indices tracked the downtrend and plunged 1.64% and 1.73%, respectively as risk appetite was limited due to ongoing sharp losses in crude oil prices.

Dow Jones index 

DJI Index (Dow Jones Industrial  2014-12-11 08-54-35

Asian equity markets followed the global downtrend and posted fresh losses overnight. The Nikkei index fell sharply 155 points (-0.89%) and the Hang Seng index retreated 0.9% towards 23,300.  

Precious metal prices came under renewed pressure in early trade this morning as gold slid slightly lower towards $1220/ounce and silver consolidated around $17 in early trade.  

XAU- Gold spot

XAU Curncy (Gold Spot   $_Oz )  2014-12-11 08-55-41

 

Events for today:

 

0001

UK

Nov

RICS House Prices

0700

DE

Nov

CPI

0900

EZ

Dec

ECB Monthly Report

1330

US

Nov

Retail Sales

1330

US

Nov

Import Price Index

1330

US

w/e

Jobless Claims

1500

US

Oct

Business Inventories

1530

US

w/e

EIA Nat Gas

 

All times UK Local Time

 

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