CL Redux
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L .79 
June 15, 2011, 1:45 p.m. EDT
Oil tumbles 5% below $95 as Greek fears dominate
SAN FRANCISCO (MarketWatch) -- Oil futures added to steep losses Wednesday as floor trading entered its last hour. Oil for July delivery (NMN:CL1N) tumbled $4.84, or 4.9%, to $94.57 a barrel. Europe's debt crisis dominated investors' attention, as media reports said Greek Prime Minister George Papandreou has offered to step down from his post. Oil had risen as high as $99.95 earlier, supported by a deeper drop in oil inventories, after a weak start following a round of data illustrating a slowdown in business activity in the U.S. The dollar (ICAPC:EURUSD) rallied more than 1% against the euro after European officials failed to come up with an agreement to deal with Greece's debt situation.
June 15, 2011, 1:45 p.m. EDT
Oil tumbles 5% below $95 as Greek fears dominate
SAN FRANCISCO (MarketWatch) -- Oil futures added to steep losses Wednesday as floor trading entered its last hour. Oil for July delivery (NMN:CL1N) tumbled $4.84, or 4.9%, to $94.57 a barrel. Europe's debt crisis dominated investors' attention, as media reports said Greek Prime Minister George Papandreou has offered to step down from his post. Oil had risen as high as $99.95 earlier, supported by a deeper drop in oil inventories, after a weak start following a round of data illustrating a slowdown in business activity in the U.S. The dollar (ICAPC:EURUSD) rallied more than 1% against the euro after European officials failed to come up with an agreement to deal with Greece's debt situation.
Demand slowing in China, says Glencore
By Jack Farchy in London and Javier Blas in Washington
Published: June 14 2011 08:44 | Last updated: June 14 2011 20:11
http://www.ft.com/cms/s/0/8387e3fc-9650-11e0-afc5-00144feab49a.html#axzz1PMwlFrk7
Glencore has warned of a slowdown in demand for commodities from China and the US, the two most important consumers of raw materials, in its first public results since its $10bn (â¬6.9bn) flotation last month.
Ivan Glasenberg, chief executive, said high prices and the Chinese governmentâs moves to curb inflation had damped demand, although he hoped any slowdown would be temporary.
Glencore has a privileged view of commodities markets as it controls a large share of trading of industrial raw materials from copper to oil and its reach can allow it to anticipate changes in the cycle. Until now, however, Glencore has rarely made public statements of its views on the direction of commodity prices and demand.
The warning on the outlook for commodities, together with a downbeat response from investors to the first-quarter results, sent Glencoreâs shares tumbling to 500p, the lowest since its initial public offering last month. The stock was the worst performing on the FTSE 100 on Tuesday, down 4.5 per cent on the day.
However, Mr Glasenberg painted a positive medium-term outlook, saying that the effects of Chinaâs monetary policy tightening would be shortlived.
âThese are short-term ebbs which we see from time to time,â he said. âWe still believe in the underlying strong fundamentals, with demand continuing to grow in Asia, particularly China and India.â
The company reported net income of $1.3bn for the quarter, up 47 per cent from a year earlier but below expectations. Investors noted that at the current rate, Glencore would miss consensus forecasts of more than $6bn for full-year earnings â although Mr Glasenberg told the Financial Times that higher production would âkick inâ later in the year.
Glencoreâs warning on commodities demand came as Chinaâs central bank raised banksâ reserve requirements for the ninth time in as many months after Chinese inflation hit 5.5 per cent in May â the highest in nearly three years.
Investors have become increasingly concerned that the commodities boom may have sown the seeds of its own destruction as near record prices slow global economic growth and dent demand.
Some fear that Glencoreâs initial public offering may have marked the top of the commodities boom. Commodity prices have fallen 7 per cent from a peak touched on the day before the company published its listing prospectus in early May.
By Jack Farchy in London and Javier Blas in Washington
Published: June 14 2011 08:44 | Last updated: June 14 2011 20:11
http://www.ft.com/cms/s/0/8387e3fc-9650-11e0-afc5-00144feab49a.html#axzz1PMwlFrk7
Glencore has warned of a slowdown in demand for commodities from China and the US, the two most important consumers of raw materials, in its first public results since its $10bn (â¬6.9bn) flotation last month.
Ivan Glasenberg, chief executive, said high prices and the Chinese governmentâs moves to curb inflation had damped demand, although he hoped any slowdown would be temporary.
Glencore has a privileged view of commodities markets as it controls a large share of trading of industrial raw materials from copper to oil and its reach can allow it to anticipate changes in the cycle. Until now, however, Glencore has rarely made public statements of its views on the direction of commodity prices and demand.
The warning on the outlook for commodities, together with a downbeat response from investors to the first-quarter results, sent Glencoreâs shares tumbling to 500p, the lowest since its initial public offering last month. The stock was the worst performing on the FTSE 100 on Tuesday, down 4.5 per cent on the day.
However, Mr Glasenberg painted a positive medium-term outlook, saying that the effects of Chinaâs monetary policy tightening would be shortlived.
âThese are short-term ebbs which we see from time to time,â he said. âWe still believe in the underlying strong fundamentals, with demand continuing to grow in Asia, particularly China and India.â
The company reported net income of $1.3bn for the quarter, up 47 per cent from a year earlier but below expectations. Investors noted that at the current rate, Glencore would miss consensus forecasts of more than $6bn for full-year earnings â although Mr Glasenberg told the Financial Times that higher production would âkick inâ later in the year.
Glencoreâs warning on commodities demand came as Chinaâs central bank raised banksâ reserve requirements for the ninth time in as many months after Chinese inflation hit 5.5 per cent in May â the highest in nearly three years.
Investors have become increasingly concerned that the commodities boom may have sown the seeds of its own destruction as near record prices slow global economic growth and dent demand.
Some fear that Glencoreâs initial public offering may have marked the top of the commodities boom. Commodity prices have fallen 7 per cent from a peak touched on the day before the company published its listing prospectus in early May.
I must have been taking a nap too today even though I was sitting in front of my computer with my eyes open.Quote from Visaria:
I actually went for a little nap when the market was around 9420, thinking there was no way it was going down much, woke up, and saw the market had already hit 94 and was turning up
Oh, well. Missed opportunities happen everyday. There's always tomorrow. But you hate to miss much on days like today which are rare. Onward and upward.
Quote from schizo:
Anyone trading DX? Man, this bi-polar sweetie is on steroid today. Today's chart pattern is called "deep throat".
Don't really trade DX. Just keep on eye on it. Here's an article. June 15, 2011, 3:10 p.m. EDT
Oil's steep drop tied to rising dollar
NEW YORK (MarketWatch)-- The sharp selloff in oil prices Wednesday was mostly due to the rise in the U.S. dollar, according to energy analysts. "With the euro so weak and dollar so strong, there is a sense that the tremendous strength of the dollar will affect oil," said Tariq Zahir, managing member of Tyche Capital Advisors. "We're seeing a lot of risk-off trade," said Zahir, referring to a broad exit from investments known as risk assets, or the commodities, stocks and currencies that had rallied sharply between 2009 and 2011 along with a rebound in the global economy. July crude (NMN:CL1N) closed at $94.81 a barrel, down $4.56, or 4.6%, as the dollar [S: EURUSD] rose more than 1% against the euro on the back of fears about a Greek debt default. Crude is priced in U.S. dollars and is worth less when the dollar rises. For oil, "the sentiment is bearish once you break $95" a barrel, Zahir said