WTI contract plunges below $90 per barrel

Thursday, October 02, 2014

Brent front month futures extended losses for a third consecutive session, heading towards $93 per barrel as disappointing manufacturing PMI data weighed on market sentiment. The oil market looks fairly bearish as the WTI front month contract declined below $90 per barrel in early trade this morning, hitting its lowest level in 17 months. In oil fundamentals, the weekly EIA inventories report showed US crude oil inventories declined unexpectedly by 1.36 million barrels last week. In addition, a sharp decline in refinery runs cut gasoline inventories to reach their lowest level in nearly two years. Distillate stocks fell sharply by 2.89 million barrels against estimates of 661,000 barrels drop, ahead of winter.

WTI Front Month contract

CLX4 Comdty (WTI CRUDE FUTURE  N 2014-10-02 08-45-13   

Brent Front Month contract

COX4 Comdty (BRENT CRUDE FUTR  N 2014-10-02 08-48-08

The Nikkei index plunged overnight, posting sharp losses after declining more than 400 points (-2.61%) to finish the session at 15,661.99. The recent weak manufacturing PMI data from Asia, US and Eurozone weighed heavily on market sentiment. However, the safe-haven yen held its gains against the dollar. Chinese equity markets are closed due to market holiday.

Nikkei Index 

NKY Index (Nikkei 225)  Daily 05 2014-10-02 08-11-25

European equity markets opened lower this morning, tracking sharp declines in Asian and US equity markets. The CAC, DAX and IBEX indices slid lower between 0.3% and 0.6% in early trade ahead of the key release of ECB rate decision. In the US, the Dow Jones plunged 238.20 points (-1.4%) to retest 16,800, while the S&P 500 and Nasdaq also retreated 1.3% and 1.6%, respectively.

Dow Jones Index

INDU Index (Dow Jones Industrial 2014-10-02 08-47-10

Gold held above a 9-month low at $1215/ounce, acting as safe-haven following the sharp declines in the global equity markets. Silver steadied around $17. The release of Challenger Layoffs and the weekly jobless claims could provide further signs about the US employment conditions ahead of the US non-farm payroll report tomorrow.

 

Events for today:

 

0001

UK

Sep

Halifax House Prices

0930

UK

Sep

Markit/CIPS Construction

1000

EZ

Aug

Producer Prices

1230

US

Sep

Challenger Layoffs

1245

EZ

Oct

ECB Rate

1330

US

w/e

Jobless Claims

1445

US

Sep

ISM NY manufacturing

1500

US

Aug

Factory Orders

1530

US

w/e

EIA Nat Gas

 

All times UK Local Time

Topics: Equities, Asia, Europe, Brent, WTI, JPY
More from: Myrto Sokou