Futures are falling back below $50 this morning after WTI crude and refined products finished down yesterday. Two reasons for this morning’s drop in prices could be attributed to the strengthening dollar and the negative outlook of the financial markets.
In the stock markets, the “Stoxx Europe 600 index fell 0.9 % following losses on Wall street and China. Bonds are also experiencing record-low yields. Japan’s 10-year bond yield fell to (- 0.155 %), while Germany’s bund yield went to (0.02 percent).
Today the market continues downward as trader’s capture some value before the next big piece of news comes out. Next week’s Federal Reserve meeting will decide whether policy makers will change the direction of interest rates.
As discussed previously in our blog on 5/27: Higher interest rates can help increase the value of a nation’s currency. Foreign investors are more likely to invest in other currencies if the potential for earning higher interest rates exists.
As of 11:05 am, WTI crude is trading down 86 cents, while Heating Oil is trading down .0268 and RBOB is down .0404 on the NYMEX.
Headlines
- Striking French refinery workers have no plans to suspend industrial action – union
- Global refinery capacity is set to hit a record high of 101.8 mbpd in August
- Indian demand for fuel jumps 6.7% in May
- Attacks in Nigeria- Obi Brass crude pipeline
- German annual inflation rate in May confirmed at zero
