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Crude’s drop below $38 marks ‘epic’ time in the oil market  DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

Crude’s drop below $38 marks ‘epic’ time in the oil market

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Crude’s drop below $38 marks ‘epic’ time in the oil market  Empty Crude’s drop below $38 marks ‘epic’ time in the oil market

Post by Ponee Mon Aug 24, 2015 11:36 am

Crude’s drop below $38 marks ‘epic’ time in the oil market  MW-DS870_sellof_20150824053242_ZH

The plunge in oil prices accelerated Monday in line with the selloff in global financial markets, with West Texas Intermediate crude futures tapping a low under $38 a barrel as investors remain shaken about prospects for global economic growth.
TimeCrude Oil - Electronic (NYMEX) Oct 2015Sep 14Nov 14Jan 15Mar 15May 15Jul 15



US:CLV5
$40$60$80$100$20
WTI crude for delivery in October CLV5, -4.23%  fell to as low as $37.75 on Monday. It quickly moved back above $38, however, and was down $1.47, or 3.6%, to $38.97 a barrel in late morning trading on the New York Mercantile Exchange.

October Brent crude LCOV5, -4.44%  on London’s ICE Futures exchange sank $1.98, or 4.4%, to $43.48 a barrel, dropping below $44 for the first time since March 2009. It is now trading more than 55% below its one-year high of $103.19 reached in August last year.

These are “epic times in the oil market,” said Matt Smith, director of commodity research at ClipperData.
Still, “while the market does look weak from a fundamental perspective, sub-$40 [Nymex] oil means a lot of bad news is being price in,” he said.

The oil losses deepened in the wake of losses in stock markets around the globe. In the U.S., the Dow Jones Industrial Average DJIA, -2.95%  plunged 1,000 points at the open, but it has since pared some of its steepest losses.

Oil prices have been under pressure for several months due to oversupply concerns, but the slump has deepened in recent weeks on fears of a sharp slowdown in the Chinese economy and its impact on global markets. The recent devaluation of the yuan has added to those concerns, stoking speculation that the slowdown will dent imports of oil and commodities by the world’s second-largest economy.

Equity markets in China were sharply lower again Monday, wiping out all of this year’s gains. The Shanghai Composite Index SHCOMP, -8.49%  closed 8.5% lower, marking its worst one-day percentage performance since February 2007.

China is the world’s largest consumer of commodities and second-largest consumer of oil. Its demand for most commodities has fallen sharply since its economy started showing signs of slowing growth. But until now, its demand for oil has held up much more strongly, helped by stockpiling.

“From a pure demand perspective, the China risk is pretty much priced in,” said Matt Parry, senior oil analyst at the International Energy Agency in Paris, in an email. “The doomsday scenario at the moment, I suppose, is much weaker emerging-market growth worldwide.”

“The forward-looking balances, however, show signs of tightening, as relative demand growth in 2015-2016 outpaces forecast non-OPEC supply—the key wildcard being OPEC and Iran in 2016,” he said.

Back on Nymex, September reformulated gasoline RBU5, -3.81% fell 6.7 cents, or 4.3%, to $1.478 a gallon and September heating oil lost 4.5 cents, or 3.2%, to $1.418 a gallon.
September natural gas NGU15, -0.86%  traded at $2.658 per million British thermal units, down 1.7 cents, or 0.6%.
Sara Sjolin contributed to this report.


http://www.marketwatch.com/story/oil-tumbles-to-fresh-lows-on-china-market-turmoil-2015-08-24-2103336

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Post by HezekiaH Mon Aug 24, 2015 1:53 pm

Someone should call the oil companies and let them know that prices have dropped. tony tony tony

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