Oil Slides as U.S. Crude Inventories Head for Record Growth

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Oil fell as U.S. crude stockpiles expanded last week, adding to the country’s biggest-ever annual growth.

Inventories rose 2.63 million barrels, capping an expansion of more than 100 million barrels this year, the most in EIA data going back to 1920. A 2.5 million-barrel drop was projected in a Bloomberg survey. Supplies in Cushing, Oklahoma, the delivery point for West Texas Intermediate crude, climbed to a record.

Crude output rose by 23,000 barrels a day to 9.2 million. That’s down from a four-decade high of 9.61 million reached in June, weekly data show. The gain occurred a week after U.S. producers put 17 more rigs back to work drilling for oil. The current count stands at 538, close to the least in five years, according to data compiled by Baker Hughes Inc.

WTI for February delivery dropped $1.27, or 3.4 percent, to settle at $36.60 a barrel on the New York Mercantile Exchange. The volume of all futures traded was 49 percent below the 100-day average at 2:40 p.m. The contract is down 31 percent this year.

Brent for February settlement fell $1.33, or 3.5 percent, to $36.46 a barrel on the London-based ICE Futures Europe exchange. Prices are down 36 percent this year. The European benchmark closed at a 14-cent discount to WTI.

Source: Bloomberg           

Gold Fund Sales Resume as Prices Fall for Third Straight Day

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Investors resumed sales from gold-backed funds as traders increased expectations that the Federal Reserve will raise interest rates again in March. Bullion futures posted a third straight decline.

Holdings in gold exchange-traded products fell 0.9 metric ton on Tuesday to erase gains made the previous day, data compiled by Bloomberg show. Assets have declined 10 times in the last 12 sessions to 1,466.3 tons, near the lowest in more than six years.

Gold futures for delivery in February lost 0.8 percent to settle at $1,059.80 an ounce at 2:16 p.m. on the Comex in New York. Prices slipped 0.7 percent in the two previous sessions. The metal is down 11 percent this year, set for a third straight annual decline in the longest slump since 1998. Aggregate trading was 28 percent below the 100-day average for this time, data compiled by Bloomberg show.

Silver futures for March delivery retreated 0.6 percent to $13.842 an ounce on the Comex. On the New York Mercantile Exchange, platinum fell the most in almost two weeks, and palladium slid.

Source: Bloomberg

U.S. Stocks Fell From Three-Week High, Paring S&P 500 2015 Gain

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U.S. stocks fell, with the Standard & Poor’s 500 Index struggling to hold its gain for the year in 2015’s penultimate session, as energy companies followed oil lower and a slide in Apple Inc. weighed on technology shares.

The S&P 500 slipped 0.7 percent to 2,063.30 at 4 p.m. in New York, after rallying 1.1 percent Tuesday to the highest since Dec. 4. A late selloff today halted at the gauge’s average price during the past 200 days.

If the S&P 500 closes 2015 higher, it will be its fourth consecutive annual gain, while a loss would make it the worst year since 2008. The index has risen as much as 3.5 percent in the year and was down 9.3 percent at its low in August. It’s 3.2 percent away from an all-time high set in May.

U.S. stocks are defying the historical trend of rallies in the final month of the year. The S&P 500 is on track for its second December drop since the financial crisis, down 0.8 percent, after a series of sharp increases and selloffs. The benchmark is up just 0.2 percent for the year, fluctuating throughout December on the back of the Federal Reserve’s first interest-rate rise in almost a decade.

Source : Bloomberg

U.S. Stocks Slip From Three-Week High, Paring S&P 500 2015 Gain

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U.S. stocks fell, with the Standard & Poor’s 500 Index struggling to hold its gain for the year in 2015’s penultimate session, as energy shares followed oil lower and a slide in Apple Inc. weighed on technology shares.

Chevron Corp. and Anadarko Petroleum Corp. sank at least 1.2 percent, amid reports showing crude stockpiles increased. Apple lost 1.1 percent after a person familiar with the matter said it paid $348 million to settle an Italian tax claim. Pep Boys declined 2.9 percent after Bridgestone Corp. declined to match Carl Icahn’s takeover offer of more than $1 billion for auto-parts retail chain.

The S&P 500 slipped 0.3 percent to 2,071.32 at 12 p.m. in New York, after rallying 1.1 percent Tuesday to the highest since Dec. 4. The Dow Jones Industrial Average lost 48.86 points, or 0.3 percent, to 17,672.12. The Nasdaq Composite Index retreated 0.4 percent. Trading in S&P 500 shares was 46 percent below the 30-day average for this time of day.

Source: Bloomberg

Europe Stocks Decline From 3-Week High Amid Thin Trading Volume

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European stocks fell on the last full trading day of the year as a slide in oil prices weighed on investor sentiment.

The Stoxx Europe 600 Index lost 0.5 percent at the close of trading, after yesterday’s 1.4 percent gain. The volume of shares changing hands was 40 percent lower than the 30-day average. Markets will shut on Friday for New Year. Some including Germany, Switzerland and Italy, will also close tomorrow for New Year’s Eve, while others will have shorter trading hours.

European equities are heading for their worst December since 2002, down 4.6 percent. While they recouped some losses in the past two weeks, that hasn’t been enough to overcome a slide earlier this month amid disappointing European Central Bank stimulus measures and as a rout in commodity and crude prices intensified. Still, the Stoxx 600 is heading for its fourth straight annual advance.

All 19 Stoxx 600 groups fell, with energy producers the worst performers. Seadrill Ltd. and Tullow Oil Plc fell at least 5.5 percent, leading losses among energy companies.

Among stocks active on corporate news, Julius Baer Group Ltd. climbed 4 percent after the Swiss wealth manager said it expects to pay about $547 million to settle a U.S. tax investigation.

Source: Bloomberg