Oil Trades Near $44 as U.S. Stockpiles Seen Increasing 7th Week

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Oil traded near $44 a barrel before U.S. government data forecast to show crude stockpiles expanded in the world’s biggest consumer.

Futures rose as much as 0.6 percent in New York after falling 1 percent Monday for a fourth day of declines. Inventories probably increased by 1.28 million barrels through Nov. 6, according to a Bloomberg survey before a report from the Energy Information Administration Thursday. That would be the seventh straight weekly gain.

Oil has slumped about 43 percent in the past year amid signs a global glut will persist as rising U.S. inventories keeps the nation’s supplies more than 100 million barrels above the five-year seasonal average. The market will be more balanced next year, Abdalla El-Badri, the secretary general of the Organization of Petroleum Exporting Countries, said in Doha.

West Texas Intermediate for December delivery was at $44.12 a barrel on the New York Mercantile Exchange, up 25 cents, at 7:34 a.m. Hong Kong time. The contract fell 42 cents to $43.87 on Monday. The volume of all futures traded was about 76 percent below the 100-day average.

Brent for December settlement lost 23 cents, or 0.5 percent, to $47.19 a barrel on the London-based ICE Futures Europe exchange on Monday. The European benchmark crude ended the session at a premium of $3.32 to WTI.

Source : Bloomberg

Oil Falls as China Trade Data Raise Demand Concerns

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Oil futures edged lower Monday as data from China showed a sharp drop in overall imports, feeding concerns about slowing energy demand from the world’s second-largest oil consumer.

December West Texas Intermediate crude, -0.79%  fell by 29 cents, or 0.7%, to $44 a barrel on the New York Mercantile Exchange. December Brent crude, -0.44%  on London’s ICE Futures exchange slipped by 2 cents to $47.40 a barrel.

WTI crude prices could dip to $41 to $42 on this combination of concerns over global demand growth and a stronger dollar, and Brent would enjoy not more than a $4 premium in this environment, Hastings said. “The bear market continues to evolve in crude oil.”

On Sunday, China’s General Administration of Customs said China’s crude imports in October dropped 5.7% from a month earlier, but rose 9.4% from a year earlier.

Source : Marketwatch

Asian Stocks Join Global Selloff on Fed Concern Before China CPI

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Asian stocks joined a global selloff amid concern that U.S. policy makers will next month end an unprecedented era of record-low borrowing costs, and as investors awaited a Chinese inflation report. Material and technology shares led declines.

The MSCI Asia Pacific Index dropped 0.4 percent to 133.16 as of 9:00 a.m. in Tokyo as Japan’s Topix index slid from an 11-week high. The Standard & Poor’s 500 Index retreated 1 percent on Monday as investors confronted the increased likelihood the Federal Reserve will boost interest rates this year. For Asian asset managers, the prospect of tighter U.S. policy is compounding concern about the growth outlook as China’s expansion slows. Producer prices in Asia’s biggest economy fell for a 44th month in October and consumer inflation decelerated, according to economist estimates before a report Tuesday.

The Topix fell 0.8 percent in Tokyo, while South Korea’s Kospi index lost 0.5 percent. New Zealand’s S&P NZX 50 Index slid 0.7 percent. Australia’s S&P/ASX 200 Index dropped 1.2 percent. Markets in China and Hong Kong have yet to start trading, while those in Singapore and Malaysia are closed for a holiday.

Source : Bloomberg

Japanese Stocks Slide as Topix Index Retreats From 11-Week High

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Japanese stocks fell from the highest level in 11 weeks, tracking declines in global equities, as investors weighed profit reports at companies from Bridgestone Corp. to Japan Display Inc. and the OECD trimmed its global economic forecasts.

The Topix index declined 0.9 percent to 1,576.37 as of 9:01 a.m. in Tokyo, after a four-day 4.2 percent advance. The Standard & Poor’s 500 Index sank the most in more than a month on Monday as investors globally continue to adjust to the increased likelihood of higher U.S. interest rates this year while the Bank of Japan stands pat on already unprecedented monetary easing.

Bridgestone cut its profit forecast and Japan Display reported an earnings forecast below analyst estimates. Some 51 percent of companies that have reported results this earnings season and for which estimates are available have topped estimates, according to data compiled by Bloomberg.

The Nikkei 225 Stock Average dropped 0.9 percent to 19,464.81.

World output will expand 2.9 percent in 2015 and 3.3 percent in 2016, down from the 3 percent and 3.6 percent predicted in September, the Organization for Economic Cooperation and Development said in a semi-annual report published Monday.

Source : Bloomberg

S&P 500 Tumbles Most Since September on Prospect of Higher Rates

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The Standard & Poor’s 500 Index tumbled the most in more than a month as the possibility that the Federal Reserve will raise interest rates as early as December weighed on equities.

Investors had shrugged off the threat of higher rates on Friday, focusing instead on a robust jobs report that signaled the U.S. economy may be ready to withstand tighter monetary policy. That sentiment reversed Monday in the absence of any additional data and after American equities ended last week near the highest level in three months.

The S&P 500 slipped 1 percent to 2,078.66 at 4 p.m. in New York, the most since Sept. 28 and its fourth straight drop. The Dow Jones Industrial Average lost 178.78 points, or 1 percent, to 17,731.55. The Chicago Board Options Exchange Volatility Index jumped 14 percent, its biggest increase since September.

The day’s selloff was broad-based. Multinationals with exposure to a stronger dollar were hit hard, with Caterpillar Inc. sliding 2.7 percent. Macy’s Inc. and Kohl’s Corp. led retailers lower. Mallinckrodt Plc plummeted 17 percent after the drugmaker was mentioned by the stock-commentary site whose scrutiny helped lead to a rout in Valeant Pharmaceuticals International Inc.

Source: Bloomberg