Thursday, 11 October 2018 10:35 WIB |
Oil headed for the biggest two-day drop since July as a rout in U.S. stocks spread to commodity markets.
Futures dropped as much as 1.7 percent in New York, after sliding 2.4 percent Wednesday. As trade tensions between the U.S. and China escalate, investors are shunning risk assets from equities to oil on fears over slowing growth. The S&P 500 Index tumbled the most since February while the Nasdaq 100 Index had its worst day in seven years. Meanwhile, Hurricane Michael became the strongest storm to hit the U.S. mainland since 1992 as it made landfall in Florida.
Crude had surged to a four-year high earlier this month with impending American sanctions against Iran set to curtail exports from the OPEC™s third-largest producer. U.S. President Donald Trump has repeatedly demanded the Organization of Petroleum Exporting Countries pump more to temper prices. While the rally has eased, traders continue to speculate whether the cartel and its allied producers can offset dwindling supplies from Iran to Venezuela.
West Texas Intermediate for November delivery declined as much as $1.26 cents to $71.91 a barrel on the New York Mercantile Exchange, and was at $72 at 12:01 p.m. in Seoul. Prices are on course for the worst two-day slide since July 17 after closing at the lowest level since Sept. 27 on Wednesday. Total volume traded was about 7 percent below the 100-day average.
Brent for December settlement was $1.50 cents lower at $81.59 a barrel on the London-based ICE Futures Europe exchange, after falling $1.91 on Wednesday. The global benchmark crude traded at a $9.78 premium to WTI for the same month.
Source : Bloomberg