WTI Crude Oil

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Oil prices have plummeted again (below $40 for WTI Crude & $43 for Brent) despite an initial surge of 3% late Thursday last week on the news that OPEC would increase output. The outlook, however, grew more confusing as the seven hour Friday OPEC meeting progressed; it eventually resulted in OPEC delaying its scheduled news conference and then ultimately failing to confirm the news reports of a production increase. WTI closed the Friday session 2.7% lower and was actually 3.8% down…

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Oil prices have flattened over the last couple of days, halting a huge sell-off from Monday; investors are still cautious as fears remain over China's economic slowdown and hefty global supplies. The sell-off on Monday came after news that Chinese industrial profits slumped in August, with the biggest drops concentrated in producers of coal, oil and metals. Commodity and equity traders will get more evidence about China's economic performance tomorrow when final manufactu…

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The US Dow Jones Index dropped over 1000 points on the open today amid extreme volatility in the markets as the Shanghai Composite Index finished it's trading session down 8.5% at 3209.91. The slowdown in the Chinese economy is having huge repurcussions not only in equities which have seen a massive correction across the board in commodities too. Both Europe and the US are feeling the heat; FTSE100 is currently down 4.5%; CAC down 7% & Dax off 6%. US Crude Oil has extende…

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The PBoC’s overnight move to weaken its national currency, the RMB (Chinese Yuan), shows a significant shift in policy. They confirm they are to play a greater role going forward in the management of the exchange rate, sending ripples through the foreign exchange market. The move certainly comes at an opportune time for them following a series of weak macro trade data out of the country recently; exports have tumbled 8.3% in July from a year earlier and there has been a severe sl…

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The Federal Reserve kept interest rates at near zero once more last night but continued to fuel the ever intensifying fire of speculation concerning when the first rate hike in nine years will be. Chairman Janet Yellen primed the markets in her Statement with positive US economy sentiments, primarily citing progress in the US job market as the main instigator. The US unemployment rate has decreased from 10% in 2009 to 5.3% in July of this year. Yellen’s wording of ‘hiring g…

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After sliding on Friday Gold took massive dive overnight, plunging as much as 5.5% in morning trading, hitting a low of around 1072. This dragged a majority of commodities the same way as the dollar strengthened across the board as investors focus on the timings of a US rate rise. It was the first time Gold traded below $1,100 since early 2010 and its lowest mark since November 2009. Other precious metals subsequently followed suit; platinum down 3.8%, silver 1.8% and palladium trading…

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*In the US it is a national holiday today, Independence day. This will affect the trading hours of certain markets with us remaining closed for the session, please see your client emails for further details* The markets seem relatively subdued this morning ahead of BoE and ECB announcements, with the US closed for Independence Day volumes are likely to be lower. Bank of England Mark Carney began his term as the first foreign national to become the Governor at the Bank of En…

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Brussels turn up pressure on Libor - Financial Times The UK’s OBR said that faster tax growth or lower than forecast public spending will be required for the government to meet its deficit forecast The BoE has a case for restarting its QE, and may need to increase it by up to £175bn if the economy is running substantially below capacity -Daily Telegraph WTI Crude rebounds; set for biggest weekly drop Since December –Bloomberg This morning upbeat comm…

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Saudia Arabia cuts oil output -Financial Times South Korean defence stocks briefly spiked following the announcement of successful North Korea missile launch – Bloomberg Struggling retailer, HMV gets £40m supplier support – The Daily Telegraph US trade gap widened in October – WSJ China ramped up production of industrial materials including copper and oil products in November, suggesting smelters and refiners are gaining confidence that the wo…

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BP has caught the headlines of the majority of the financial press, after being temporarily being banned from new government work in the United States. This ban came as a surprise to the markets, following the $4.5bn fine for the disaster caused by the 2010 oil disaster. The expected time frame for the suspension is likely to be no longer than 18 months, though it does send out a message to businesses that their actions will be met with government interventions. In the early part of th…

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Following the terrorist attack on the bus in Tel Aviv yesterday, immediately following Crude futures spiked, due to the uncertainty. Subsequently Hammas has agreed a ceasefire with Israel, in a deal brokered by Egypt. In this eight-day conflict there has been ‘140 Palestinians and 5 Israelis killed’ (CityAM). Hopefully following the ceasefire the bloodshed will end and relative calm will return. Mike Lynch the boss of UK software firm Autonomy prior to its acquisition by HP…

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During the Asian session equities fell the most in two weeks after the release of Chinese manufacturing data, showing that its manufacturing sector is likely to contract in September for an 11th month. The Asian selloff continued after the release of Japanese exports down by 5.8% from August compared to the previous year. This week has seen WTI Crude fall by nearly $10 from high to low currently trading with a $90 handle trading at a 6-week low. This follows the sudden selloff on Monda…

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During the US trading session on Monday, there was a sudden drop in a matter of minutes of just over $4 in WTI and Brent. This sudden movement led to a selloff in equities, gold and silver. Speculation and rumours as to the reasoning were that there had been a “fat finger,” an algorithm that had gone wrong and that there was an announcement of a special petroleum release (SPR). The CME Group quickly released a statement that they “..we’re not aware of any technical is…

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Its Monday morning and the start of the trading week in Europe, and though there has been unrest in the Middle East, political tensions increasing between Japan and China, the mainstream UK press is focused on the pictures taken of a royal while sunbathing. The escalating unrest in the Middle East is likely to unsettle investors and push up the prices of Oil due to the uncertainty of future supply. Protesters have been outside western embassies and Al-Qaeda brazenly attacked the ISAF b…

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Asian equities overnight have fallen after disappointing earnings from Chinese companies and Australia, a key trading partner of China, has cut its commodity sales forecast on concerns of the slowing Chinese economy. A decrease in inventories led to WTI Crude gaining during Asian trading. The City of London’s eyes this morning are on the Chancellor George Osborne’s 2012 Budget. With some headline parts of the Budgettacticallyleaked prior to the actual announcement, traders…

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