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

--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

React to this article
Latest news
Date Title
1m agoDJGoldman Sachs Sells Aluminum Business to Swiss Firm -- Update
2m agoDJContinental Resources Cuts 2015 Budget Amid Oil-Price Decline
3m ago IHS : Infonetics: Mobile broadband overtakes SMS as largest generator of mobile data revenue
4m ago G2 RESOURCES : December 22, 2014 GRANITE REIT ANNOUNCES ACQUISITION OF US$68.75 MILLION PORTFOLIO IN THE UNITED STATES
4m ago NEXUS ENERGY : McGrathNicol Announcement
7m ago FIRT TR : First Trust Advisors L.P. : Announces Distributions for Exchange-Traded Funds
8m ago AMERICAN AIRLINES : Brown, inhofe praise signing of american airlines bill into law
8m ago ALSTOM : French Firm to Pay Record Fine in Bribery Case
8m ago SANDRIDGE ENERGY : Announces Mandatory Conversion of $200 Million 6.0% Convertible Perpetual Preferred Stock
8m ago Nicholas Financial, Inc. Announces Intention to Commence Modified Dutch Auction Tender Offer
Latest news
Advertisement
Hot News 
DIXONS CARPHONE : Wearable tech on 1 in 3 Christmas wish lists, experts predicting 17 million to own it within three years
PETARDS : Wins GBP1 Million Equipment Deal With Ministry Of Defence
SOITEC : updates its 2015 and 2016 financial guidance
ChinaNet Online Holdings Signs Strategic Partnership Agreement With MediaFun
OCWEN FINANCIAL : Agrees to Settlement With New York Dept. of Financial Services
Most Read News
1d ago GOODMAN : GMG distribution for the six months ending 31 December 2014
5h ago DAVIDE CAMPARI MILANO : Sale of Limoncetta di Sorrento in Italy and sale of the Federated Pharmaceutical division in Jamaica
5h ago ADHERE CREATIVE : Named 'Platinum Partner' by Renowned Marketing Company HubSpot
1h ago Wall St. up for fourth straight day; S&P ends at record
5h ago BLOOMSBURY PUBLISHING : Acquisition of Osprey Publishing Limited
Most recommended articles
1m agoDJGoldman Sachs Sells Aluminum Business to Swiss Firm -- Update
2m agoDJContinental Resources Cuts 2015 Budget Amid Oil-Price Decline
11m ago Alstom says will aim for best practices after record bribery settlement
13m agoDJNew Zealand Goods Trade Deficit Narrows as Imports Fall
14m agoDJVanda, Novartis Settle Licensing Dispute Over Schizophrenia Drug
Dynamic quotes  
ON
| OFF