Oil’s slide accelerated on Tuesday, with U.S. futures dropping to lows not seen in 11 months due to ongoing worries about weakening global demand, oversupply and sell-offs across other asset classes, including equities.
U.S. futures were on track to close lower for a record 12th straight session, with Tuesday’s selloff the worst yet. More than 830,000 contracts had changed hands as of 1:45 p.m. EST (1845 GMT), as funds shed positions with oil dropping to December 2017 lows.
“It’s like a run on the bank,” said Phil Flynn, analyst at Price Futures Group in Chicago. “It’s getting to the point where it doesn’t seem to be about fundamentals anymore, but a total collapse in price.”
Oil prices were hit on Monday after U.S. President Donald Trump put pressure on the Organization of the Petroleum Exporting Countries not to cut supply to prop up the market. That came after reports that Saudi Arabia was considering a production cut at the December OPEC meeting, on increased alarm that supply has started to outpace consumption.
“Twelve days in a row is insane – but there are a lot of pieces putting pressure on the market,” said Bob Yawger, director of energy futures at Mizuho.
Via Globe and Mail