NewsCrude drops from renewed fears in markets due to the credit crisis impeding the recovery PreviousForecastAnalysisCrude this morning is trading below $77 due to the drop witnessed in global stock indices, due to renewed fears in markets regarding the European debt crisis impeding the recovery process, which in return will limit demand on crude oil.
The US S&P 500 Index yesterday slipped to its lowest level in seven weeks after renewed woes in financial markets sparked by the Feds pointing out the negative effect that the sovereign debt crisis had left on growth levels in the US; thus, pushing Greek, Portuguese and Spanish shares to sharply plunge at the start of the European session.
Crude opened yesterday around $75.95 recording its highest around $76.55 and lowest around $75.30 per barrel, where it managed to close trading around $76.55 per barrel.
The S&P GSCI Index closed yesterday to record 501.80 after gaining 1.38 points; whereas the RJ/CRB Commodity Index closed around 261.62 climbing 1.90 points.
Meanwhile, Asian stock indices dropped followed by the US due to corporate earnings data that were worse than expected in markets; thereby spreading a pessimistic wave over investors highlighting the US economy’s ability to continue with the growth and recovery process.
The renewed fears in markets are spreading a wave of panic over investors; thus pushing them to shy away from purchasing high-yielding assets due to the low risk appetite, and thereby pushing them to lean more towards lower yielding assets as a safe haven.
Crude opened today around $76.52 recording its highest around $76.95 and lowest around $76.15 per barrel, while currently trading around $76.20 per barrel.
As for NYMEX as of 03:00 EST; motor gasoline dropped to record $208.460 per gallon by $0.890; heating is trading around $205.430 per gallon slipping by $0.290; whereas natural gas rose by $0.022 around $4.770 per 1000 cubic feet. In London, Brent fell by 0.350 points to record 76.120.