U.S. Oil Prices Continue Record Skid

By Calamatta Cuschieri

European stocks rose Tuesday, tracking global gains, but advances were kept in check by weakness for major oil companies as crude prices fell.

The Stoxx Europe 600 climbed 0.2% to 362.90, after Monday’s loss of 1%, a day that saw stocks fall across the board and regions. Germany’s DAX 30 rose 0.4% to 11,374.47, while France’s CAC 40 rose 0.2% to 5,067.35. The U.K.’s FTSE 100 was flat at 7,048.20.

U.S. stock market closes mostly lower as oil gets clobbered. Major indexes had bounced back in the morning as large-capitalization technology names appeared to have regained their footing after the Dow and the Nasdaq suffered triple-digit losses in the previous session but the market failed to take advantage of the early momentum.

The Dow Jones Industrial Average slid 0.4%, to 25,286.49, the S&P 500 fell 0.2%, to 2,722.18, while the Nasdaq Composite Index edged up to 7,200.87.

Oil prices remain under pressure and look set to extend their losing streak into a 13th day

Oil prices remain under the pump on Wednesday following the commodity’s worst single day of trading in several months, as global fears surrounding demand worry investors.

If these prices stick, oil will endure a 13th straight day of losses, further extending its record losing streak.

Tuesday’s drop, which saw both Brent and WTI fall about 7%, was driven largely by a tweet from US President Donald Trump, in which he urged Saudi Arabia not to cut production. The tweet came in response to Khalid al-Falih, Saudi Arabia’s oil minister, saying the kingdom is likely to cut production by around 500,000 barrels.

Oil prices have tumbled into a bear market — down at least 20% from their October peaks — amid concerns of growing stockpiles. Earlier in November, the Trump administration granted eight countries temporary waivers from the sanctions it placed against Iran that were designed to cut off its oil from the rest of the world.

And data released last week by the Energy Information Agency showed US oil inventories climbed by 5.8 million barrels in the week to November 2nd, while production hit a weekly record of 11.6 million barrels per day.

The oil market had already been under pressure since the beginning of October as trade tensions and concerns over rising interest rates weighed.

Disclaimer: This article was issued by Nadiia Grech, junior trader at Calamatta Cuschieri. For more information visit,www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

This article provided by NewsEdge.