Crude Lower Overnight Close To 4 Year Low
Crude oil fell in overnight trade, close to multi-year lows, as demand from the US - the world's largest consumer - continues to fall despite prices having fallen almost 70% from their July highs.
At 7.30am GMT January crude was $1.10 lower at $45.69/barrel.
The average amount of fuel products such as gasoline and diesel supplied by refiners for the past four weeks was 7.9 percent less than a year earlier, according to a U.S. Energy Department report yesterday.
Although crude and gasoline stocks also fell, according to the same report, it is the petroleum products supplied numbers that the market seems to be focusing on.
Indeed, it's a complete contrast to earlier in the year when the hype-merchants were in full flow. Back then only bullish factors were taken into consideration, anything bearish was ignored or brushed to one side. We appear to have the exact opposite of those mechanics applying to the market today.
It is truly astonishing how all the market can see today is doom, gloom, economic despondency, falling demand, it's never going to end. Yet six months ago it was surging demand from India and China that too was never going to end, the boys at Golden Sacks and the likes were on a ticket to the moon.
Interesting times. There will be fortunes made and lost on this bear run, just as there were on the bull run. And the bottom will be just as difficult to call as the top was.
At 7.30am GMT January crude was $1.10 lower at $45.69/barrel.
The average amount of fuel products such as gasoline and diesel supplied by refiners for the past four weeks was 7.9 percent less than a year earlier, according to a U.S. Energy Department report yesterday.
Although crude and gasoline stocks also fell, according to the same report, it is the petroleum products supplied numbers that the market seems to be focusing on.
Indeed, it's a complete contrast to earlier in the year when the hype-merchants were in full flow. Back then only bullish factors were taken into consideration, anything bearish was ignored or brushed to one side. We appear to have the exact opposite of those mechanics applying to the market today.
It is truly astonishing how all the market can see today is doom, gloom, economic despondency, falling demand, it's never going to end. Yet six months ago it was surging demand from India and China that too was never going to end, the boys at Golden Sacks and the likes were on a ticket to the moon.
Interesting times. There will be fortunes made and lost on this bear run, just as there were on the bull run. And the bottom will be just as difficult to call as the top was.
