Commodity Blog

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Oil Drops Led by Other Commodities and US Stocks

September 17, 2012 at 19:48 by Andriy Moraru

Both New York’s Light Sweet and London’s Brent grades of oil fell today, following the abrupt end of the US stock market rally and the declines in other commodity markets, namely gold and silver.

Light Sweet crude oil erased the gains of its last 5 days of rally and reached the lowest level since September 7. Brent has managed to renew it September low today. Both posted biggest daily drops since late June.

Today’s extremely pessimistic Empire Manufacturing Index report, aggressive profit-taking, and dissipation of over-certainty about the situation with eurozone are all mentioned by the market analysts as the probable reasons for such an unexpected decline. The correction coincided with the late Friday’s Commitments of Traders report that showed the doubling of the speculators’ long positions in Light Sweet.

Light Sweet tumbled about 3.1 percent today and is trading near $95.99 per barrel as of 19:43 GMT. Meanwhile, Brent lost almost 3.2 percent in a single trading session and is currently trading at $113.06 per barrel.

If you have any questions and comments on the commodities today, use the form below to reply.

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