Largest Losing Month For Oil & US Equity Markets
are were trading modestly higher to start the last trading day of what will likely go down as the largest losing month for Oil & US equity markets in the past 2 years. (As this was being written oil & gasoline futures dropped into the red) The good news for investors is that US stocks are staging a more substantial rally, adding nearly 4% since bottoming out earlier in the week.
After trading nearly in lockstep during the sell-off earlier in the month, equity and energy prices have been trading more independently over the past couple of weeks, although part of that detachment appears to be the large moves in equities that have been coming later in the afternoon once energy prices have already posted their settlements for the day.
The API was said to show a build in crude oil inventories of 5.69 million barrels, while refined product inventories both decreased by more than 3 million barrels on the week. The DOE’s weekly report is due out at 10:30 eastern.
As we look ahead to November trading, the two big questions remain how stock markets will act, and how the physical oil market will handle the Iranian sanctions that officially kick in 4 days from now. From a chart perspective, things are looking pretty bearish as long-term trend-lines have been broken, opening the door for another $5-6 drop in oil and 10-20 cent drop for refined products over the next few weeks.
Leader in the clubhouse for best “Face in hand Trader” of October.