Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

Crude-Oil Futures Fall As Commodities, Equities Retreat

02/04/2013 | 03:50pm US/Eastern
Recommend:
0

--U.S. crude prices fall 1.6% amid broader market tumble

--DJIA drops below 14000, commodities lower

--Nymex crude settles $1.60 lower at $96.17/bbl

 
   By Jerry A. DiColo 
 

NEW YORK--U.S. crude oil futures slipped lower Monday, part of a slump across commodities and equities markets as investors grow skeptical that a month-long rally can continue.

Light, sweet crude for March delivery settled $1.60, or 1.6%, lower at $96.17 a barrel on the New York Mercantile Exchange, handing back all of last week's gains and retreating from a four-month high. Brent crude on the ICE futures exchange fell $1.16 to $115.60 a barrel.

Oil prices followed stock markets lower as the Dow Jones Industrial Average dropped back below 14000, the first triple-digit decline this year. Meanwhile, the dollar rose against the euro, which typically results in falling oil prices as it makes crude more expensive for buyers using other currencies.

After strong rallies in oil, stocks and other raw materials since the start of the year, analysts and traders said the markets were due for a correction as investors locked in recent gains.

"We are just having a flight out of commodities, out of equities," said Matt Smith, an analyst at Summit Energy, who attributed the losses to profit taking by investors. "It was bloodletting across the board."

The euro recently traded at $1.3517, down 0.9% from Friday.

Oil prices have been on a tear to start the year. Even with Monday's losses, the market has gained 4.7% in 2013 a investors cheered economic data that showed a better labor market in the U.S. and renewed confidence among businesses and consumers. The stock market has also rallied, and oil traders often use stocks as an indicator of investors' overall economic outlook.

But as oil prices pushed toward triple digits last week, some market watchers said technical indicators suggested that futures were due to retreat.

"We definitely got a boost from the economic optimism, but all good things come to an end," said Phil Flynn, an energy analyst at Price Futures Group. "We've had an incredible run."

Meanwhile, oil traders are also looking ahead to Chinese economic data due later this week. China will begin releasing January data Friday.

As the world's second-largest oil consumer, the reports on inflation and trade will likely keep traders' attention for any signals about the country's oil demand.

Front-month March reformulated gasoline blendstock, or RBOB, settled 4.21 cents lower at $3.0115 a gallon. March heating oil settled 0.66 cent lower at $3.1540 a gallon.

More information on settlements and highs and lows for futures on Nymex and ICE platforms can be found by searching for the following headlines:

 
   Nymex Light Crude Oil Close 
   Nymex Harbor RBOB Gasoline Close 
   Nymex Heating Oil Close 
   ICE Brent Crude Oil Close 
   ICE Gas Oil Close 
 

Write to Jerry A. DiColo at jerry.dicolo@dowjones.com

Recommend :
0
React to this article
Latest news
Date Title
<1m ago RIB SOFTWARE : RIB Software AG (RSTA) signs an iTWO Cloud Phase I Deal with New Zealand Construction Giant for Nation Building Roads Project (DGAP News)
1m ago RESEARCH AND MARKETS : The Automotive Transmissions Report 2014
3m agoDJPRESS RELEASE : The Conference Board Leading Economic Index(R) (LEI) for the Euro Area Increased in June
4m ago CABLE AND WIRELESS COMMUNICATIONS : Say On Track For Targets On Solid First Quarter
4m ago Eurogroup's Wieser sees euro zone reforms biting slowly - paper
5m ago German Ifo business morale index falls in July
6m ago RESEARCH AND MARKETS : Sub-Saharan African Mobile End-user Trends
7m ago MURCHISON METALS : Removal from Official List (COB 25/07/2014)
7m ago MINERA GOLD : Shares Issued on 24 April 2014 - Dilution
7m ago GREENKO : Pricing of Senior Notes
Latest news
Advertisement
Hot News 
CTAC : Upholding the law: Sindh Police finally gets its vehicles registered
WESSANEN : Royal Wessanen Q2 2014 results and semi-annual financial report
CARILLION : Possible Merger - Balfour Beatty and Carillion
ROYAL BANK OF SCOTLAND : Double funding boost for women's charity
QR ENERGY : Acquisition of QR Energy, LP by Breitburn Energy Partners LP May Not Be in Shareholders' Best Interests
Most Read News
1d ago MASTERCARD : Visa cuts revenue forecast as cross-border transactions slow
1d ago STARBUCKS : sales in Americas region up slightly more than expected
1d ago MOODY : assigns A1 underlying and Aa3 enhanced ratings to Catskill CSD NY's $5.9M GO Bonds
1d ago MCDONALD : takes chicken nuggets off menu in Hong Kong amid food scare
1d ago COCA COLA : Governor denies switching to Fanta to boycott Coca-Cola
Most recommended articles
3m agoDJPRESS RELEASE : The Conference Board Leading Economic Index(R) (LEI) for the Euro Area Increased in June
4m ago Eurogroup's Wieser sees euro zone reforms biting slowly - paper
4m ago German Ifo business morale index falls in July
8m ago A G BARR : Irn-Bru maker AG Barr outperforming tough UK soft drinks market
11m ago India seeks 'visible outcomes' on food subsidies before backing WTO protocol
Dynamic quotes  
ON
| OFF