Jump to navigation

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
Follow Futures          
       
more >>

We Asked Traders

Top things I learned about life while day trading millions

Sponsored Content

Trading

Equities.com launches unlimited trading via Tradier Brokerage, Transforming into a news & fintech portal

Featured Topics

more Commodities>>

Commodities

A Saudi-Iran oil war could break up OPEC
Advertisement
more Volatility>>

Volatility

Implied vs. Realized Volatility & the VIX
more Financials>>

Financials

Making drones work for you
more Financials>>

Financials

Perspective: S&P 500 short side off highs

Advertisement

Oil drops the most in two months as equities decline on Europe

By Mark Shenk, Bloomberg

February 4, 2013 • Reprints

Oil tumbled the most in two months after equities dropped on political turmoil in Europe and as Middle East tensions eased on the prospect of renewed talks between Western countries and Iran.

Futures slipped 1.6 percent and the euro weakened amid opposition calls for Spanish Premier Mariano Rajoy to resign following contested reports about illegal payments. Iran considers an offer by U.S. Vice President Joe Biden to negotiate directly over its nuclear program a “step forward,” Foreign Minister Ali Akbar Salehi said.

“We’re seeing a generalized selloff in all the markets as the problems of the Spanish prime minister are a reminder of the big issues that remain in Europe,” said John Kilduff, a partner at Again Capital LLC, a New York-based energy hedge fund. “Oil is also down because of Biden’s overture to Iran and the Iranian response. This is reducing the security premium slightly.”

Crude oil for March delivery dropped $1.60 to settle at $96.17 barrel on the New York Mercantile Exchange. It was the biggest decline since Dec. 6. Trading was 13 percent below the 100-day average at 2:37 p.m. Futures have retreated 1.7 percent in the past year.

Brent oil for March settlement fell $1.18, or 1 percent, to $115.58 a barrel at 3 p.m. New York time on the London-based ICE Futures Europe exchange. The contract settled at $116.76 on Feb. 1, the highest level since Sept. 13. Trading volume was 9 percent above the 100-day average.

The European benchmark grade was at a $19.41-a-barrel premium to West Texas Intermediate futures traded in New York. The spread widened from $18.99 on Feb. 1.

Unauthorized Funds

Stocks retreated along with Spanish and Italian government bonds amid signs of returning political uncertainty in two of Europe’s weakest economies.

In Madrid, opposition leader Alfredo Perez Rubalcaba said Rajoy should resign after reports in El Pais newspaper that he or members of his People’s Party received the unauthorized funds. With elections looming this month in Italy, former Prime Minister Silvio Berlusconi narrowed the lead of front-runner Pier Luigi Bersani.

The Dow Jones Industrial Average declined 0.7 percent, and the Standard & Poor’s 500 Index fell 0.8 percent. The Dow exceeded 14,000 last week for the first time since October 2007. The euro decreased as much as 1 percent against the dollar. A weaker euro and stronger U.S. currency reduce the appeal of dollar-denominated commodities as an investment.

“We’re seeing a strong correlation between equities and oil today,” said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York. “The dollar is stronger today, which is going to hurt commodities.”

Page 1 of 2
>>next >

About the Author

Copyright 2014 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Related Articles
A Saudi-Iran oil war could break up OPEC
Did crude oil make its 2018 low?
Energy demand steps back in play
Crude shoulder season blues
Crude corrects on production pop, but demand side is looming
Previous
Stocks fall most this year, euro weakens as Spain yields surge
Next
U.S. to file civil charges against S&P over crisis bond ratings
Related Terms
oil 6597Oil 4835commodities 3439Energies 2981Standard & Poor 2008China 1933Commodity Futures Trading Commission 1289New York Mercantile Exchange 1061Crude oil 647europe 463eurozone 416Iran 381ICE Futures Europe 251Sovereign debt crisis 165Futures 115Mariano Rajoy 90Spain 86John Kilduff 54Again Capital LLC 53Silvio Berlusconi 50Mizuho Securities USA Inc. 48Bob Yawger 35Joe Biden 27Ali Khamenei 23Pier Luigi Bersani 18Confluence Investment Management 16Grady 16El Pais 12energy hedge fund 12Spanish and Italian government 10oil last month 7Ali Akbar Salehi 7Unauthorized Funds 1Alfredo Perez Rubalcaba 1

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
images