Oil slides to one-year low at end of volatile trading week

Pump jacks are seen in the Midway Sunset oilfield, California, in this April 29, 2013 file picture. — Reuters pic
Pump jacks are seen in the Midway Sunset oilfield, California, in this April 29, 2013 file picture. — Reuters pic

LONDON, Nov 23 — Oil prices slumped to one-year lows today on lingering concerns over high crude supplies, while stocks diverged at the end of another volatile week for global markets.

The pound dropped versus the dollar, a day after spiking on news that Britain and the EU had struck a draft deal over ties post Brexit.

That came ahead of a weekend summit in Brussels to sign off on an overall package on the UK’s exit from the European Union in March.

Elsewhere, the euro dropped as data monitoring company IHS Markit said in the 19-nation eurozone pulled back in November to its slowest rate in nearly four years, as exports weakened.

In commodities trading, benchmark crude oil contract North Sea dived to a one-year low at US$60.29 per barrel.

WTI hit the lowest point for more than one year, at US$51.73.

“Although most analysts claim that this has to do with supply overhang and increased production from Russia and Saudi Arabia, the bottom line is that the US President (Donald Trump) keeps pushing for lower prices,” said Fiona Cincotta, senior market analyst at City Index trading group.

“While this is the case it will be difficult to see a return to oil at a higher level unless oil cartel Opec decides on a major output cut at its next meeting on December 6.”

Fresh fears meanwhile over headwinds facing the global economy saw Asian stock markets plunge into the red today, after US markets were closed for Thanksgiving.

shares led the downward charge as Shanghai slumped by more than two per cent, with the tech sector hit hard by a Journal report that Washington is urging its allies to avoid using equipment from Chinese telecoms giant Huawei.

Worsening trade tensions between the US and have shattered confidence on global trading floors.

“China wants to make a deal. If we can make a deal, we will,” Trump said, ahead of crunch talks with his Chinese counterpart Xi Jinping at the G20 in Argentina next week.

The world’s top two have been locked in a trade war since the summer, with the US imposing punitive tariffs on Chinese goods worth US$250 billion per year. In retaliation, China imposed tariffs on US$110 billion of US goods.

Washington has threatened to toughen measures even further if the issue is not resolved before .

Key figures around 1100 GMT

Oil – Brent Crude: DOWN US$1.80 to US$60.80 per barrel

Oil – West Texas Intermediate: DOWN US$2.55 at US$52.07

Pound/dollar: DOWN at US$1.2838 from US$1.2866 at 1700 GMT Thursday

Euro/dollar: DOWN at US$1.1349 from US$1.1400

Dollar/yen: DOWN at 112.86 yen from 113.00 yen

London – FTSE 100: FLAT at 6,958.61 points

Frankfurt – DAX 30: UP 0.1 per cent at 11,153.91

Paris – CAC 40: UP 0.1 per cent at 4,944.31

EURO STOXX 50: UP 0.3 per cent at 3,135.34

Tokyo – Nikkei 225: Closed Friday for holiday

Hong Kong – Hang Seng: DOWN 0.4 per cent at 25,927.68 points (close)

Shanghai – Composite: DOWN 2.5 per cent at 2,579.48 points (close)

New York – Closed Thursday for holiday


Source: The Malay Mail Online

Leave a Reply

Your email address will not be published. Required fields are marked as *

Time limit is exhausted. Please reload CAPTCHA.