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Oil Embarks on a Second Losing Day

September 18, 2012 at 16:50 by Andriy Moraru

The crude is falling both in London and New York today following the yesterday’s drop. It was also spurred by the negative outlook for the global economic development in FedEx‘s corporate report.

Although both Brent and Light Sweet are failing to renew the lows set yesterday, the grades fell considerably from the Monday’s closing levels. The crude oil futures pared its last week’s gains and remain in a strongly bearish short-term trend.

The moving factor for the current drop in commodities was the FY2013 Q1 earnings report by FedEx. The company reduced its profit outlook for the second quarter of the fiscal year 2013, citing “weak global economic conditions.” The oil is going down in consonance with the stock markets and the high-yielding risky currencies. An elevated risk-aversion level is evident from the markets’ behavior.

Light Sweet crude is down from $97.33 to $96.45 per barrel as of 16:46 GMT today. Brent dropped from $113.98 to $112.77 per barrel.

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

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