Crude Oil Tumbles as OPEC Ministers Gather for Policy Meeting

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Oil decreased for the third time in four days as ministers from the Organization of Petroleum Exporting Countries arrive in Vienna to discuss production policy.

Crude fell as much as 4.2 percent in New York amid a broad commodity slump. Prices briefly rose after the Iranian Oil Ministry’s Shana news agency said a majority of OPEC members agree on an output cut, with the exception of Saudi Arabia and Gulf Arab countries. U.S. crude supplies increased to 489.4 million barrels last week, the most for this time of year since 1930, government data show.

West Texas Intermediate crude for January delivery dropped $1.43, or 3.4 percent, to $40.42 a barrel at 12:46 p.m. on the New York Mercantile Exchange. Total volume was 22 percent above the 100-day average.

Brent for January settlement slipped $1.43, or 3.2 percent, to $43.01 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a $2.59 premium to WTI.

Source: Bloomberg

Gold ends near 6-year low as Yellen comments point to rate hike

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Gold futures on Wednesday marked their lowest settlement in nearly six years, as a rise in November U.S. private-sector employment and comments from the Federal Reserve’s chairwoman supported the likelihood that the central bank will agree to raise interest rates when it meets in two weeks.

Gold for February delivery on Comex fell $9.70, or 0.9%, to settle at $1,053.80 an ounce. The settlement was the lowest since Feb. 5, 2010.

March silver also lost 7.4 cents, or 0.5%, to $14.009 an ounce.

In other metals trade, March copper fell 3.9 cents, or 1.9%, to $2.033 a pound.

January platinum lost $3, or 0.4%, to $832.40 an ounce, while March palladium shed $13.40, or 2.5%, to $525.80 an ounce.

Source: Marketwatch

Asian Stocks Slide Second Day as Drop in Oil Hits Energy Shares

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Asian stocks fell for a second day, following U.S. shares lower, as a drop in oil weighed on energy shares.

The MSCI Asia Pacific Index lost 0.2 percent to 133.59 as of 9:01 a.m. in Tokyo, with material and energy companies leading losses among the regional measure’s 10 industry groups. U.S. crude traded at $40.20 a barrel after slumping to $39.94 in the previous session amid signs of discord between members before Friday’s OPEC meeting in Vienna. The Standard & Poor’s 500 Index dropped 1.1 percent on Wednesday as tumbling oil prices sparked a broader selloff in equities and Federal Reserve Chair Janet Yellen laid the groundwork for a December interest-rate increase by signaling higher confidence in the U.S. economic outlook.

In a speech at the Economic Club of Washington, Yellen also warned that waiting too long to end the era of near-zero interest rates could force the central bank to tighten too quickly, which would risk disrupting financial markets and the six-year expansion.

Source: Bloomberg

Japanese Stocks Fall, Led by Energy Explorers, as Oil Plunges

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Japanese stocks fell, led by energy explorers, after crude oil plunged below $40 a barrel.

The Topix index dropped 0.2 percent to 1,599.12 as of 9:01 a.m. in Tokyo as all but eight of its 33 industry groups retreated. The Nikkei 225 Stock Average lost 0.3 percent to 19,988.35. The yen traded at 123.24 per dollar after weakening 0.3 percent on Wednesday as Federal Reserve Chair Janet Yellen laid the groundwork for the first U.S. rate increase since 2006 just as Europe braces for higher borrowing costs.

West Texas Intermediate oil traded at $40.14 in early Thursday after slumping 4.6 percent in the previous session in New York to $39.94, the lowest close since Aug. 26.

The selloff was sparked by signs of discord in the Organization of Petroleum Exporting Countries as ministers arrive in Vienna for a meeting. A majority of OPEC members agree on an output cut, with the exception of Saudi Arabia and Gulf Arab countries, the Iranian Oil Ministry’s Shana news agency said.

E-mini futures on the Standard & Poor’s 500 Index were little changed after the underlying gauge dropped 1.1 percent on Wednesday, its steepest one-day loss since Nov. 13.

Source: Bloomberg

U.S. Stocks Drop as Energy Weighs Amid Selloff in Commodities

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U.S. stocks fell as tumbling oil prices sparked a broader selloff in equities, while Federal Reserve Chair Janet Yellen signaled increased confidence in the economy, laying the groundwork for a December interest-rate increase.

Equities continued a pattern of alternating between gains and losses that led the S&P 500 in November to its narrowest monthly move in six years. Energy producers today dropped the most in two months as crude fell below $40 a barrel for the first time since August, and raw-material shares had their biggest slide in three weeks. Technology companies erased early gains as Qualcomm Inc. and Yahoo! Inc. trimmed their rallies.

The Standard & Poor’s 500 Index declined 1.1 percent to 2,079.67 at 4 p.m. in New York, reversing yesterday’s 1.1 percent rally to open the month.

The S&P 500 extended losses in afternoon trading as crude’s decline accelerated before an OPEC meeting Friday. As three days of economic events likely to set the course for global markets into 2016 kicked off, traders’ focus on diverging monetary policies was diverted by a renewed rout in crude as OPEC has shown few signs it will vote to trim output.

Meanwhile, major central bank policies are set to diverge as European Central Bank President Mario Draghi has been priming markets for action since October. Economists surveyed by Bloomberg unanimously predict the ECB will boost stimulus again at its meeting tomorrow, while the bank is less than halfway through a 1.1 trillion-euro ($1.2 trillion) bond-buying program.

The S&P 500 has rebounded 11 percent from its low in August on growing confidence that the economy is sturdy enough to handle higher borrowing costs. The benchmark is up 0.9 percent for the year, and has alternated between gains and losses over the last 12 sessions, the longest such streak since 2013.

Source: Bloomberg