Oil Trades Near $45 as Saudi Stockpiles Climb Amid Supply Glut

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Oil traded near $45 a barrel in New York as Saudi Arabia’s oil stockpiles climbed to a record, adding to signs that the global oversupply may persist.

Futures were little changed in New York after declining 4.7 percent on Friday. Commercial petroleum stockpiles held by the world’s biggest crude exporter increased to 320 million barrels, the highest since at least 2002, according to data Sunday on the website of the Riyadh-based Joint Organisations Data Initiative. Venezuela and Saudi Arabia agreed to restore stability in the oil market, Foreign Minister Delcy Rodriguez said on Twitter over the weekend.

Oil is down more than 25 percent from this year’s closing peak in June amid a global oversupply that Goldman Sachs Group Inc. predicts may keep prices low for the next 15 years. The Organization of Petroleum Exporting Countries has sustained output amid the glut, producing above the group’s target of 30 million barrels a day for a 15th month in August, according to data compiled by Bloomberg.

West Texas Intermediate for October delivery, which expires Tuesday, was at $44.83 a barrel on the New York Mercantile Exchange, up 15 cents, at 9:44 a.m. Seoul time. The contract lost $2.22 to $44.68 on Friday. The volume of all futures traded was about 22 percent below the 100-day average. The more-active November future rose 14 cents to $45.16.

Brent for November settlement was 6 cents higher at $47.53 a barrel on the London-based ICE Futures Europe exchange. Front-month prices slid 1.4 percent last week. The European benchmark crude traded at a premium of $2.37 to WTI for November.

Saudi Arabia cut back oil production by 1.9 percent in July, the first drop since February, to 10.36 million barrels a day, according to the JODI data. Crude exports slumped 1.2 percent to 7.28 million barrels a day.

Money managers’ net-long position in WTI rose by 14,821 contracts to 147,678 futures and options in the week ended Sept. 15, leaving them the most bullish in two months, U.S. Commodity Futures Trading Commission data showed.

Source: Bloomberg

Euro Extends Decline as ECB Officials Stress Divergence From Fed

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The euro extended a drop from Friday, the biggest in three weeks, as traders anticipated European Central Bank officials will continue to flag a readiness to ease monetary policy amid the risk of slower growth and inflation.

Europe’s common currency slid on Friday as Benoit Coeure, an ECB Executive Board member, emphasized that U.S. and Europe’s policy trajectories will “remain very different,” even after the Federal Reserve refrained for increasing interest rates last week. His peers Ewald Nowotny and Peter Praet are scheduled to speak on Monday. Euro declines may be limited after Alexis Tsipras was returned to power in Greece following an emphatic election victory, keeping the nation’s reform agenda on track before an international review due by year’s end.

The common currency was at $1.1296 as of 8:11 a.m. in Singapore after dropping 1.2 percent to $1.1298 on Friday. It was little changed at 135.52 yen. The dollar fetched 119.96 yen from 119.98. Japanese markets are closed for holidays on Monday through Wednesday.

While the Fed on Thursday held off, Chair Janet Yellen said most officials still expect to tighten borrowing costs this year for the first time in almost a decade. Futures indicate a 46 percent chance of an increase in December, a 53 percent probability of a January move and 67 percent odds the Fed will raise its benchmark in March.

Analysts say the delay could add to pressure on the ECB to expand its quantitative-easing program to counter a stronger euro and weaker global demand.

The euro has climbed 3.4 percent in the past three months, according to Bloomberg Correlation-Weighted Indexes. The dollar has climbed 4.1 percent and the yen is up 6.7 percent over that period.

Hedge funds and other money managers boosted net bearish bets on the euro for the third week in the period ended Sept. 15 to 84,202 contracts from 81,241, according to data from the Commodity Futures Trading Commission.

Source: Bloomberg

Asian Stocks Decline on Global Growth Concern After Fed Comments

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Asian stocks declined after U.S. shares fell and Federal Reserve officials argued that an interest-rate increase is still warranted this year. Markets in Japan are closed.

The MSCI Asia Pacific Excluding Japan Index lost 0.6 percent to 410.10 as of 10:01 a.m. in Sydney, before markets in China and Hong Kong opened. Australia’s S&P/ASX 200 Index fell 0.4 percent and South Korea’s Kospi index retreated 1.1 percent. New Zealand’s S&P/NZX 50 Index slipped 0.1 percent. The Standard & Poor’s 500 Index lost 1.6 percent on Friday.

Three U.S. policy makers at the weekend separately explained their rationale for supporting a rate increase at one of the Fed’s two remaining meetings of 2015, citing declines in unemployment and other gains in the U.S. economy that should outweigh headwinds from slower growth abroad and turbulent financial markets.

Source: Bloomberg

U.S. Stocks Tumble as Fed Decision Spurs Global Economy Concerns

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U.S. stocks tumbled, erasing the week’s gain in the Standard & Poor’s 500 Index, as the Federal Reserve’s warnings over the global economic outlook rippled across financial markets.

The S&P 500 lost 1.6 percent to 1,958.13 at 4 p.m. in New York. Banks took a hit for a second day, wiping out a rally from earlier in the week, while energy shares plunged with the price of oil. The VIX, a measure of market volatility, climbed for the first time in four days.

Equity volatility may have increased as some futures and options on stocks and indexes expire today in a process known as quadruple witching. Trading in S&P 500 companies was 50 percent above the 30-day average.

The operator of the S&P 500 will also rebalance the index in a quarterly move to adjust member weightings. About $41 billion of shares was expected to be traded as investors buy and sell stocks to mimic the changes, according to a Sept. 8 estimate by Howard Silverblatt, an index analyst at the New York-based S&P Dow Jones Indices.

Equity markets have been turbulent amid concerns about a China slowdown and the Fed’s intentions. The Chicago Board Options Volatility Index endured its biggest weekly gain on record in August, and has closed above 20 for 20 straight sessions, the longest stretch since June 2012. The VIX jumped 11 percent to 23.45 today.

Source: Bloomberg

U.S. Stocks Fall as Fed Decision Spurs Economy Concern

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U.S. stocks slumped as investors speculated the Federal Reserve’s refusal to raise rates bespeaks larger concerns about the strength of the global economy.

The Standard & Poor’s 500 Index lost 1.2 percent to 1,966.72 at 12:52 p.m. in New York. The gauge pared its gain for the week to 0.3 percent. The Dow Jones Industrial Average dropped 238.61 points, or 1.4 percent, to 16,436.13. The Dow Jones Transportation Average slumped 1.5 percent.

Some futures and options on stocks and indexes expire today in a process known as quadruple witching, which may increase stock volatility. Trading in S&P 500 companies was 38 percent above the 30-day average.

The operator of the S&P 500 will also rebalance the index in a quarterly move to adjust member weightings. About $41 billion of shares will be traded as investors buy and sell stocks to mimic the changes, according to a Sept. 8 estimate by Howard Silverblatt, an index analyst at the New York-based S&P Dow Jones Indices.

Source: Bloomberg