23 October 2013 04:40 GMT US Oil Collapses Below $100 Despite Dollar’s Trouble Typically, when the US dollar dives, the commodities that are priced against the benchmark typically rise in value. That wasn’t the case for the energy complex this past session. Despite the devalued pricing instrument, US oil futures (West Texas Intermediate) extended its drop below the $100 mark and continued on to $98. More stimulus sloshing around the financial system carries similar connotations for risk appetite here as it does for equities, but the separation between QE and tangible growth is more recognizable for this supply-and-demand equation. Tepid jobs data equates to weaker growth and diminished demand for the fuel that drives expansion. In the meantime, UK-brent was little changed on the day. The expiration of the November 2013 NYMEX futures contract may have contributed to a portion of US dip – but not this full scale.
Posted on: Wed, 23 Oct 2013 05:58:08 +0000
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