Crude Oil’s Continuing Dive Leads World Financial Markets South

Crude Oil’s Continuing Dive Leads World Financial Markets South

$OIL, $USO, $DIA, $SPY, $QQQ

Crude Oil’s 14 month dive accelerated Monday with prices falling more than 5% to 6.5 yrs helping to  push financial markets due South.

WTI Crude Oil’s biggest 1-day fall in about 2 months indicates that worst-case fears over supply glut is the Key motivator.

Brent Crude for delivery in Oct fell 2.77, or 6.1%, to settle at 42.69, after marking a contract low at 42.51 bbl, the lowest front-month price since March 2009.

US Crude for delivery in Oct was down 2.21 or 5.5% at 38.24, the lowest since February 2009. US Crude on track for a 17% monthly decliner, posted its 8th consecutive weekly loss Friday, the longest weekly losing streak since Y 1986.

Crude Oil’s 40% dive since its high in late June has hit members of OPEC very hard, triggering some talk of an emergency meeting in December, do not expect Saudi Arabia to change course, adding in the soon to be unsanctioned Iran Crude and we have the perfect storm for 20 Crude Oil in the not to distant future, a mark not seen since Y 1998.

The sentiment-driven fall took a toll across the world’s financial markets, with many raw materials marking new lows. The 19-commodity Thomson Reuters/Core Commodity CRB Index dropped nearly 2.7% to its lowest since late Y 2002.

Monday’s US major market indexes closes: DJIA -588.47 at 15871.28, NAS 100 -179.79 at 4526.25, S&P 500 -77.68 at 1893.21

Stay tuned…

HeffX-LTN

Paul Ebeling

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