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MTECHTIPS:-Crude oil re-approaches 3-month low with Sandy in focus
Crude oil futures were under pressure during European morning hours on Monday, re-approaching last week’s three-month low as traders monitored the trajectory of Hurricane Sandy.On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD85.54 a barrel during European morning trade, dropping 0.85%.New York-traded oil prices fell by as much as 1% earlier in the day to hit a session low of USD85.36 a barrel. Futures fell to a three-month low of USD84.95 a barrel on October 24.Trading activity was expected to remain thin on Monday, as Hurricane Sandy approached the northeastern U.S.NYMEX floor trading will remain closed, according to exchange operator CME Group, while electronic trading of energy and other NYMEX products will be unaffected.The U.S. National Hurricane Center said earlier that Sandy will likely make landfall near New York late-Monday or early-Tuesday. The storm’s maximum sustained winds strengthened to 85 miles per hour.Sandy is forecast to converge with two other systems, creating a phenomenon the National Weather Service dubbed “Frankenstorm”. Oil prices remained on the back foot, as increasing concerns over the outlook for global economic growth and the impact on future oil demand prospects dampened the appeal of the commodity.Investors were jittery amid ongoing uncertainty over whether Spain is preparing to request a bailout from its euro zone partners, which would activate a bond buying program by the European Central Bank.Meanwhile, doubts over whether Greece can meet austerity targets demanded by the troika mounted after the country’s opposition leaders said his party would vote against an austerity package expected to go before parliament later this week.The euro re-approached a three-week low against the U.S. dollar, while the dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.27% to trade at 80.32, close to a seven-week high.
Crude oil futures were under pressure during European morning hours on Monday, re-approaching last week’s three-month low as traders monitored the trajectory of Hurricane Sandy.On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD85.54 a barrel during European morning trade, dropping 0.85%.New York-traded oil prices fell by as much as 1% earlier in the day to hit a session low of USD85.36 a barrel. Futures fell to a three-month low of USD84.95 a barrel on October 24.Trading activity was expected to remain thin on Monday, as Hurricane Sandy approached the northeastern U.S.NYMEX floor trading will remain closed, according to exchange operator CME Group, while electronic trading of energy and other NYMEX products will be unaffected.The U.S. National Hurricane Center said earlier that Sandy will likely make landfall near New York late-Monday or early-Tuesday. The storm’s maximum sustained winds strengthened to 85 miles per hour.Sandy is forecast to converge with two other systems, creating a phenomenon the National Weather Service dubbed “Frankenstorm”. Oil prices remained on the back foot, as increasing concerns over the outlook for global economic growth and the impact on future oil demand prospects dampened the appeal of the commodity.Investors were jittery amid ongoing uncertainty over whether Spain is preparing to request a bailout from its euro zone partners, which would activate a bond buying program by the European Central Bank.Meanwhile, doubts over whether Greece can meet austerity targets demanded by the troika mounted after the country’s opposition leaders said his party would vote against an austerity package expected to go before parliament later this week.The euro re-approached a three-week low against the U.S. dollar, while the dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.27% to trade at 80.32, close to a seven-week high.
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