Mobile  |  About us  |  Photos  |  Videos  |  Subscriptions  |  RSS Feeds  |  Today's Paper  |  Classifieds  |  Contact Us
The Daily Star
FRIDAY, 25 APR 2014
12:39 AM Beirut time
Weather    
Beirut
22 °C
Blom Index
BLOM
1,214.01down
Middle East
Follow this story Print RSS Feed ePaper share this
Oil drops to $69 on high stocks, German ban
Reuters
A+ A-

LONDON: Oil stood $69 a barrel after falling to its lowest in over seven months on Wednesday, pressured by high US stockpiles and as concern over tighter financial regulation dampened appetite for riskier assets.

The decline in oil for a third day followed Tuesday’s report from industry group the American Petroleum Institute showing crude inventories at the storage hub at Cushing, Oklahoma, rose to a record high.

Also Germany’s move to ban naked short-selling of some securities, including the stocks of its 10 most important financial institutions, hit equities and the euro as investors moved out of riskier assets.

“It’s all financial markets-driven,” said Carsten Fritsch, commodities analyst at Commerzbank. “The news regarding short-selling was quite surprising and it led to a rapid strengthening of the US dollar and falling equity markets, and this affects commodity prices.”

US crude for June delivery fell as low as $67.90, its lowest intraday level since September 30, 2009. By 1257 GMT, the contract was down 22 cents at $69.19 a barrel. Brent crude was down 30 cents at $74.13.

Investors moved into safe havens such as the dollar and the yen on fears tighter financial regulation would derail the global economic recovery.

Analysts who use past price moves to predict future direction said US crude’s next support level is around $66 a barrel, almost $20 short of the 19-month high of $87.15 prices reached on May 3.

Oil markets look well supplied with inventories in the US on the rise and the Organization of the Petroleum Exporting Countries pumping 2 million barrels a day (bpd) more than its official output limit.

 
Home Middle East
 
     
 
Advertisement
Comments  

Your feedback is important to us!

We invite all our readers to share with us their views and comments about this article.

Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.

comments powered by Disqus
Advertisement


Baabda 2014
Advertisement
Follow us on Facebook Follow us on Twitter Follow us on Linked In Follow us on Google+ Subscribe to our Live Feed
Multimedia
Images  
Pictures of the day
A selection of images from around the world- Thursday April 24, 2014
View all view all
Advertisement
Rami G. Khouri
Rami G. Khouri
Israel shows Zionism’s true colors
Michael Young
Michael Young
For Christians, blessed are the dividers
David Ignatius
David Ignatius
An Iran deal is close, but we’re not there yet
View all view all
Advertisement
cartoon
 
Click to View Articles
 
 
News
Business
Opinion
Sports
Culture
Technology
Entertainment
Privacy Policy | Anti-Spamming Policy | Disclaimer | Copyright Notice
© 2014 The Daily Star - All Rights Reserved - Designed and Developed By IDS