US Crude Oil breaks US$90 mark on global economic concerns
US Crude Oil prices fell and broke the important support mark of 90 bbl Monday as concerns about global economic slowdown offset fears of unrest in the Middle East.
The Crude Oil prices were pressured heavily after data showed that Japanese exports tumbled and industry giant Caterpillar Inc. (NYSE:CAT) warned of a faster-than-expected global economic slowdown Monday.
There were still worries about debt problems in Europe and economic slowdown in China. The ongoing deficit cutting debate in Washington also weighed on market sentiment.
The North Sea Buzzard, Britain’s largest oil field, was expected to restart on 25 or 26 October after a maintenance shutdown, suggesting supplies increase. Pipeline company TansCanada (NYSE:TRP) said it will restart a pipeline connecting Canada and the US Monday.
In earlier trading, Crude Oil prices went higher on fears that the spill-over of turbulence in Syria to Lebanon could pose risks to Crude Oil supplies in the Middle East.
Friday, Lebanon’s intelligence chief Brig. Gen. Wissam al- Hassan was assassinated in a massive car bombing. He was a powerful opponent of Syria, which for decades has wielded political and military influence in Lebanon.
WTI Light, Sweet Crude for Nov delivery fell 1.32, or 1.47%, to settle at 88.73 bbl on the New York Merc. Brent Crude for Dec delivery dropped 0.70, or 0.64%, to close at 109.44 bbl.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
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