maverick
05-08-2008, 09:34 AM
Oil prices tumbled on Monday as signs of increased Opec output and the threat to demand from an economic slowdown trumped concern about Tropical Storm Edouard and Iran’s nuclear dispute with the West. “Crude futures are down despite a brewing storm and that shows you how momentum has shifted in this market,” said Phil Flynn, analyst at Alaron Trading in Chicago.
US crude for September delivery was down $4.13, or 3.3%, at $120.97 a barrel on the Comex division of New York Mercantile Exchange at 22:30 pm IST, trading from $119.50 to $126.35. Prices fell below $120 for the first time since May 6, when the intraday low was $119.33.
Nymex crude took out the 10-day moving average at $124.91 and support charted at $120 on Monday. US crude hit its record $147.27 on July 11. In London, September Brent crude was down $3.62, or 2.9% at $120.56 a barrel, trading from $118.80 to $125.30.
Opec supply rose for a third straight month in July, according to a news agency survey. US consumer incomes rose at the lowest rate in over a year during June, the government reported on Monday, and inflation showed signs of accelerating.
Tropical Storm Edouard moved across the northern Gulf of Mexico on Monday and has a 20% chance of hitting the Texas-Louisiana coast as a hurricane, the US National Hurricane Center said. Edouard shut down the Louisiana Offshore Oil Port, partially closed the Houston Ship Channel, and shut a small amount of output. Marathon shut its Texas City, Texas, refinery ahead of the storm.
Iran faces more punitive measures, including sanctions, if it does not respond positively to an offer by major powers to rein in its nuclear program in exchange for incentives, the US State Department said on Monday. Iran and the representative of six world powers talked by telephone on Monday without resolving the dispute over Tehran’s nuclear program.
“Despite all these bullish inferences a lower market must mean that participants have an infinitely greater concern about a deteriorating global economy,” Mike Fitzpatrick, vice-president at MF Global said in a note.
US crude for September delivery was down $4.13, or 3.3%, at $120.97 a barrel on the Comex division of New York Mercantile Exchange at 22:30 pm IST, trading from $119.50 to $126.35. Prices fell below $120 for the first time since May 6, when the intraday low was $119.33.
Nymex crude took out the 10-day moving average at $124.91 and support charted at $120 on Monday. US crude hit its record $147.27 on July 11. In London, September Brent crude was down $3.62, or 2.9% at $120.56 a barrel, trading from $118.80 to $125.30.
Opec supply rose for a third straight month in July, according to a news agency survey. US consumer incomes rose at the lowest rate in over a year during June, the government reported on Monday, and inflation showed signs of accelerating.
Tropical Storm Edouard moved across the northern Gulf of Mexico on Monday and has a 20% chance of hitting the Texas-Louisiana coast as a hurricane, the US National Hurricane Center said. Edouard shut down the Louisiana Offshore Oil Port, partially closed the Houston Ship Channel, and shut a small amount of output. Marathon shut its Texas City, Texas, refinery ahead of the storm.
Iran faces more punitive measures, including sanctions, if it does not respond positively to an offer by major powers to rein in its nuclear program in exchange for incentives, the US State Department said on Monday. Iran and the representative of six world powers talked by telephone on Monday without resolving the dispute over Tehran’s nuclear program.
“Despite all these bullish inferences a lower market must mean that participants have an infinitely greater concern about a deteriorating global economy,” Mike Fitzpatrick, vice-president at MF Global said in a note.