Oil probes lower in very nervous markets

CRUDE CONCERNS: Oil prices found their footing after tumbling during U.S. trading on uncertainty over whether OPEC will extend an agreement to cut production to shore up prices. Member nations of the Organization of the Petroleum Exporting Countries are due to discuss the deal later this month. U.S. benchmark crude futures rose 20 cents to $45.61 a barrel in electronic trading on the New York Mercantile Exchange. The contract slumped to its lowest level since late November, losing $2.30, or nearly 5 percent, to settle at $45.52 a barrel on Thursday. Brent crude, the standard for international oils, rose 19 cents to $48.47 in London after a similar decline.

QUOTEWORTHY: “The collapse in oil prices saw (benchmark West Texas Intermediate) plunge as the market continues to probe for a bottom amid oversupply concerns,” said Stephen Innes, senior trader at OANDA. Oil is now near the psychological $45 level “which, if broken could send the oil pits into complete disarray and will likely have far-reaching consequences for both equity and currency markets near term,” he added.

ENERGY SHARES: Oil company stocks led declines. PetroChina, China’s biggest oil producer, lost 2.6 percent and Sinopec, the country’s largest refiner, fell 1.5 percent. Australia’s Woodside Petroleum slid 2 percent.

San Francisco Chronicle

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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