It earlier traded at a session high USD93.22 a barrel. Crude oil was likely to find support at USD90.97 and resistance at USD99.78. .
US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.10% to trade at USD79.42..
Elsewhere on the ICE, Brent oil for November delivery rose 0.06% to trade at USD110.50 a barrel, with the spread between the Brent oil and Crude oil contracts standing at USD17.48 a barrel..
The reason for the oil price fall appears to be comments from the world’s largest oil exporter, Saudi Arabia. Saudi oil minister Ali-al Naimi last week said the country was ready to take action to calm rising prices, which he said were not supported by market fundamentals – in other words, supply and demand..
Oil had been steadily rising, and surged to four-month highs following the US Federal Reserve’s announcement of further quantitative easing..
recent price support won from the US Federal Reserve’s decision last week to embark on a third round of exceptional stimulus measures, or quantitative easing (QE3), had tailed off..
The extended losses are hinting more and more that the bullish impact of QE3 had already been priced into the market for several weeks (ahead of the announcement) and that the focus is now on weaker global economic growth indicators, Crude demand worries were stoked after British banking giant HSBC released data showing China’s manufacturing sector still stuck in a rut..
Crude demand worries were stoked after British banking giant HSBC released data showing China’s manufacturing sector still stuck in a rut, said Justin Harper, a strategist at IG Markets Singapore trading group. “The China data has pushed down commodities after HSBC’s flash PMI showed contraction for another month..
Oil has been on the receiving end of this negativity towards the Chinese economy and more evidence of its continued slowdown. China is a major consumer of oil and any slowdown in its economy worries traders about future demand.” The preliminary reading of the purchasing mangers’ index (PMI) for China released by HSBC hit 47.8 this month, a mild improvement from a final reading of 47.6 in August, the bank said in a statement..
For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment