Oil Prices Plummet

HONG KONG (AFP) – 

Another sell-off in energy firms dragged Asian markets lower on Wednesday, tracking hefty losses on Wall Street as oil prices tanked, while Shanghai was muted despite MSCI’s decision to include mainland-listed firms in a key index.

Crude sank more than two percent on Tuesday as traders grow increasingly worried about a global supply glut as continued production in the US and elsewhere offsets an OPEC output cut deal.

The fall also came despite a drop in US inventories.

“Oil prices have officially entered a bear market (and) plummeted two percent after reports of rising output for from Nigeria and Libya — both OPEC members exempt from the production cut deal,” said Stephen Innes, senior trader at OANDA.

The crude sell-off, which means the commodity has lost a fifth of its value from recent highs, saw energy firms drag Wall Street down with all three main indexes ending deep in the red.

France 24 via AFP

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

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and 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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