Crude futures fell NEW YORK-Friday with a slumping euro as Standard & Poor’s willing to credit rating downgrade France, adding new fears about the European economy. The ratings service, knowledge of the French government and other European governments that their debt ratings cut, according to reports Friday, sending the euro to 16-month lows against the dollar and taking the wind out of riskier assets such as oil, stocks and other commodities. News of the impending downgrades renewed concerns about a possible stumbling block for the world economy and oil demand. Traders quickly switched gears to focus on the credit crisis in Europe after a Thursday selloff was sparked by possible delays in the EU embargo on Iranian oil.
“We started the week on Iran terror, and we ended the week focused on Europe again,” said Peter Beutel, head of trading consultant Cameron Hanover. “There’s been a wet blanket thrown over commodities, equities, currencies and it is due to the S & P downgrades.”
Light, sweet crude for February delivery 40 cents, or 0.4%, down regulated at $ 98.70 a barrel on the New York Mercantile Exchange, after falling as low as $ 97.70 a barrel earlier in the session.
Brent crude on the ICE futures exchange traded $ 28 cents lower at $ 110.92 per barrel.
Oil decreased with decrease of the euro as traders fled riskier assets. The euro fell as low as $ 1.2624. Oil is usually when the dollar rises, because it makes crude more expensive for buyers in other currencies.
Futures have fallen from well above $ 100 earlier this week, with drops aimed at a possible delay in the Iranian oil embargo of the EU with up to six months. Plans for the ban, the tensions between Iran and the West, with Iran threatening to close the Strait of Hormuz, a chokepoint for one third of water based on the world oil shipments.
Traders said the S & P downgrades would have resulted in a steep selloff, but tensions remain high around the Strait, it remains risky to bet on lower prices.
“It’s hard to sell this stuff with both hands with Iran still in the background,” said Pete Donovan, vice president and trader at Vantage Trading.
Still, some analysts predict oil continued to climb. Goldman Sachs Group Inc. on Friday raised its oil price forecast, citing more positive short-term economic developments in the U.S. and China.
The bank raised its forecast for West Texas Intermediate crude oil by 8% to $ 113 per barrel on a three-month basis, from $ 104.50 per barrel. Certainly every six months is expected to $ 115 per barrel from $ 113.50 per barrel, and her 12-month look at $ 123.50 per barrel from $ 122.50 per barrel.
Front-month February formulated gasoline blend stock, or RBOB, settled 0.29 cents higher at $ 2.7342 a gallon. February heating oil settled 2.69 cents lower at $ 3.0272 a gallon.
source:onlinewsj
Solomon Gold has reduced Its Exposure To Elephant Hunting for the production of cash in Queensland
Nick Mather has taken a very different purpose Solomon Gold traded around London this week, with the help of John Meyer, team aos Fairfax. . . Read more »
President Barack Obama, Struggling to Overcome Worst Oil Spill in U.S
VENICE La / LONDON - BP plc faces a grim future on Tuesday the failure to stop a Gulf of Mexico oil spill a dip in the shares of energy giant and the government, Obama said that the opening prompted a criminal research. . . Read more »