Gloomy financial data from China, Europe, the U.S. keep oil investments down
Crude oil futures retreated significantly in the U.S. today, razing the gains they accumulated on the commodity index yesterday, as pessimistic economic data from seemingly every corner of the globe flooded the sector. Dismal financial results in China, Europe and the U.S. all caused sharp declines in global oil investments, keeping the commodity oil down for yet another day.
Despite the fact that the U.S. Energy Department announced more than 6 million barrels in declines at the nation’s primary crude storage hubs in Cushing, Oklahoma; disappointing global financial cues kept crude oil in the red for almost the entirety of the trading session. Traders shied away from the troubled fuel on news that 2,000 news unemployment benefits claims were filed in the U.S., along with a considerable 0.7% drop in the nation’s durable goods orders. As the people of the U.S. braced for higher heating bills during winter, greater austerity measures showed in outside spending habits, causing oil investments to sink.
Europe and its ongoing struggle with debt remained a major concern for crude investors. The region’s strongest economy, Germany held a bonds auction earlier in the day, which proved to be one of the worst sells in the nation since the euro was introduced as its currency. German officials reported 4 billion euros earned, as opposed to the 6 billion that they were expecting originally. Grim news from Germany, along with soaring borrowing costs in France caused doubt to emerge in the well-being of the two sole remaining strong economies in the debt-addled euro zone, and oil investments reacted accordingly, falling on the sector charts at a sharp angle. The dollar’s advancements against the euro also affected the commodity oil negatively.
The manufacturing sector in China reported its lowest showings in more than 32 months, slipping yet another line of support away from crude oil. The rapidly-emerging nation’s expansion plans have been one of the strongest safety cushions for oil investments throughout the year.
Crude in the U.S. is currently trading at $96.17 per barrel, showing a decrease of $1.84, while Brent slipped more than $2 to settle at $107.24 per barrel in London.