NewsCrude futures slip in the early session for the third consecutive dayPreviousForecastAnalysisCrude dropped this morning for the third consecutive day as European leaders are struggling to contain the budget crisis sparked by Greece, specifically after reports injected strong doubt regarding the US’s economic recovery, the number one energy consumer in the world.
Yesterday, crude oil plunged for the seventh consecutive day through the past eight days, trailing a huge sell-off across equity markets and slumping US indices. Meanwhile, EU’s financial ministers are expected to meet today in Brussels to discuss the debt crisis engulfing the European continent and discomforting financial markets.
The overall feeling in global markets is pessimistic, where investors are jittery and skeptic towards the size of the debt crisis in Europe which they feel that the current chaos maybe the tip of the iceberg, thus reflecting their sentiment on equities and commodities as crude oil was heavily affected in the past two weeks sell-off.
Standards & Poor's 500 index fell by 3.9% yesterday, followed by the Asian MSCI index that also slumped this morning by 1.4% to record its lowest levels in eight months; whereas crude futures dropped yesterday by 2.7% to close around $68.01 per barrel.
Crude opened yesterday around $72.70 recording its highest around $73.25 and lowest around $68.85 per barrel, where it managed to close around $69.50 per barrel.
The S&P GSCI index settled at 473.94 after falling 8.02 points; whereas the RJ/CRB Commodity index also retreated 2.57 points to close around 250.07.
As for NYMEX as of 03:14 EST; motor gasoline futures dropped to record $195.910 per gallon by $0.540; heating is trading around $190.420 per gallon after climbing by $0.230; whereas natural gasoline gained $0.010 to record $4.116 per 1000 cubic feet. In London, Brent slipped by $0.220 to record $71.620.
Crude opened today around $69.40 per barrel recording its highest around $70.40 and lowest around $69.30, where it currently trades around $70.25 per barrel.