Crude Oil Tumbles Below $34 a Barrel as U.S. Supply Glut Expands

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Oil dropped below $34 a barrel in New York after U.S. gasoline inventories surged the most in 22 years and crude supplies at the American hub climbed to a record.

Brent oil fell to an 11-year low in London as West Texas Intermediate tumbled to a seven-year low in New York. Gasoline stockpiles rose 10.6 million barrels last week, the most since May 1993, government data show. Crude inventories in Cushing, Oklahoma, the delivery point for WTI, advanced to an all-time high, while nationwide supplies slid. Adding pressure to oil was China’s central bank devaluation of the yuan, a reminder of the August cut that sparked financial-market turmoil.

Oil prices have shrugged off rising tension between Iran and Saudi Arabia as supplies continue to outstrip demand. The market also ignored a “cry for help” from Libya’s National Oil Corp. as Islamic State militants attacked crude storage tanks in the region of Es Sider, the country’s biggest oil port. Analysts from Citigroup Inc. to UBS Group AG predict crude may fall to $30 in the coming months.

West Texas Intermediate for February delivery declined $2, or 5.6 percent, to $33.97 a barrel on the New York Mercantile Exchange. It was the lowest close since December 2008. Total volume traded was 22 percent higher than the 100-day average at 3 p.m.

Brent for February settlement fell $2.19, or 6 percent, to $34.23 a barrel on the London-based ICE Futures Europe exchange. It was the lowest close since June 2004. The European benchmark crude closed at a 26-cent premium to New York futures.

Source : Bloomberg

Gold Advance in Longest Run Since October as Investors Seek Haven

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Gold advanced for a fourth straight day, the longest rally in almost three months, as a selloff in equities and a claim that North Korea detonated a hydrogen bomb boosted demand for a haven asset.

Bullion reached the highest in mid-November as stock markets around the world retreated. The atomic-test claims add to investor concerns spurred by Saudi Arabia-Iran tensions and China’s stock-market rout earlier this week that had already boosted gold’s appeal as a store of value.

Gold, which fell for a third straight year in 2015 as U.S. equities rose and the Federal Reserve signaled interest-rate increases, climbed above its 50-day moving average on Wednesday for the first time since early November. Newmont Mining Corp., the biggest U.S. gold producer, defied the sell-off in equities, rallying 1.4 percent, among the best performances on the Standard & Poor’s 500 Index.

Gold futures for February delivery advanced 1.3 percent to settle at $1,091.90 an ounce at 1:44 p.m. on the Comex in New York, marking the longest winning streak since Oct. 15.

Prices extended their gains after the market closed, reaching $1,094.90, the highest since Nov. 16, after the minutes of the Dec. 15-16 meeting of the Federal Reserve were released. The minutes showed the decision to raise interest rates last month was a “close call” for some policy makers who worried about too-low inflation and received assurances that their colleagues would closely monitor its progress.

Silver futures were little changed on the Comex in New York, while platinum declined on the New York Mercantile Exchange.

Source : Bloomberg

U.S. Stocks Lost to Three-Month Lows After China Weakens Yuan

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U.S. stocks tumbled to three-month lows, following equities around the world after China weakened its currency, stoking investor concern that a slowdown in the world’s second-largest economy will damp global growth.

Energy and raw-material companies in the Standard & Poor’s 500 Index led the selloff, losing at least 2.6 percent as China’s move revived the angst that sent financial markets into turmoil last summer. Chevron Corp. declined 3.9 percent, while copper producer Freeport-McMoRan Inc. slid 8 percent. Six of the benchmark’s 10 main industries dropped at least 1 percent.

The S&P 500 lost 1.3 percent to 1,990.40 at 4 p.m. in New York, trimming a drop of as much as 1.9 percent while sliding to its lowest level since Oct. 6.

Source : Bloomberg

U.S. Shares Head Toward 3-Month Lows After China Weakens Yuan

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U.S. shares headed toward three-month lows, mirroring declines in equities around the world after China weakened its currency, stoking investor concern that weakness in the world’s second-largest economy will drag down global growth.

Energy and raw-material companies in the Standard & Poor’s 500 Index sank at least 2.6 percent as China’s move revived the angst that sent financial markets into turmoil last summer. Chevron Corp. declined 4 percent, while copper producer Freeport-McMoRan Inc. slid 6.3 percent. Losses were broad as all 10 of the benchmark’s main industries retreated.

The S&P 500 lost 1.1 percent to 1,995.07 at 12:35 p.m. in New York, on track for its lowest level since Oct. 14. The Dow Jones Industrial Average fell 213.63 points, or 1.3 percent, to 16,945.03, with the gauge on pace for its worst three-day start to a year since 2008. The Nasdaq Composite Index dropped 1 percent. Trading in S&P 500 shares was 22 percent above the 30-day average for this time of day.

Source : Bloomberg

Europe Stocks Bad Start to 2016 Worsens With China Back in Focus

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European stocks fell after China’s latest weakening of its currency refreshed concerns about the outlook for global growth.

The Stoxx Europe 600 Index slid 1.3 percent to 354.35 at the close of trading, its lowest level since Dec. 14. Commodity producers and carmakers -- among the sectors with most sales exposure to China -- led declines. Tuesday’s rebound from the worst-ever start to the year was short-lived: Europe’s equity benchmark is down 3.1 percent this week amid signs that China’s slowdown is worse than anticipated.

The yuan fell to the lowest level since at least 2011 after China’s central bank set the currency’s reference rate at an unexpectedly weak level. The move is reminiscent of last August’s devaluation, which stunned financial markets worldwide and sparked a selloff that saw the Stoxx 600 tumble as much as 18 percent from its record. Investors are also watching geopolitical developments after North Korea claimed to have successfully tested its first hydrogen bomb.

Source: Bloomberg