logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

 


Crude Oil Prices Decline on Concern over Default

By  +Follow October 15, 2013 9:53AM
Share:
Tickers Mentioned:

The price of crude dropped Tuesday, with futures contracts for November 13th delivery trading down almost 1.3 percent for West Texas Intermediate and over 1 percent for Brent. The primary culprit appears to be persistent concern over the government shutdown and the possibility of a default on American debt.

Potential Debt Default Drives Down Prices

At the heart of falling crude prices was continued concern over the potential for a government debt default. The potential economic collapse that would follow a debt default would most likely result in decreased demand for crude at home and abroad, making oil a much less attractive investment for some.

"Crude oil prices retreated ... as the US budget issues in Washington weighed on market sentiment and raised persistent concerns about a slowdown in the US oil demand," said Sucden brokers analyst Myrto Sokou on Monday. "The main focus remains on the US debt ceiling and government shutdown as the markets are hoping for a resolution to the issue before Thursday's deadline."

Oil markets kept a close eye on news out of Washington, but Tuesday seemed to indicate that the stalemate wasn’t coming to an end.

Supply Up As Well

The continued drop in prices comes after prices reached a 14-week low last Wednesday when the government reported higher-than-expected inventories of crude, adding the price-pressure of increased supply to the already present potential for decreased demand.

"We seem to be tipping the scales back toward another test of $100 a barrel," said Tradition Energy broker and analyst Gene McGillian on Wednesday.

ETFs Hit as Well

Plunging crude prices hit ETFs hard as well, with the United States Oil Fund ($USO) dropping over 1 percent and the PowerShares DB Oil Fund ($DBO) declining over 0.5 percent. Joining them were several equities ETFs tracking oil producers, with the Market Vectors Oil Services ETF ($OIH) off over 0.5 percent, the iShares Dow Jones US Oil Equipment ETF ($IEZ) dropping almost 0.65 percent, and the SPDR S&P Oil & Gas Equipment & Services ETF ($XES) plunging over 1 percent.

 

[Image Courtesy of Wikimedia Commons]

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for uso
Michael Cook
31 Jul 15 18:16:14
Our Stock Alerts Gained Over 550% This Month Already! See Our Huge New Pick Coming This Week: http://t.co/abs4Q0eCx9 $USO $EWP $CORN
Options Answers
31 Jul 15 18:11:49
RT @DennyT14: USO United States Oil Fund, LP % Change http://t.co/qs2YwsiPfu $USO $MNKD $XME $HD #USO #stockmarket #tradeideas
SLV Fractalerts
31 Jul 15 18:08:27
Tell us what you think about this weeks $USO alert. How are you trading it? http://t.co/xXtS3CdDDL
IH News Desk
31 Jul 15 18:06:08
$SLW Stock Price Updated Friday, July 31, 2015 8:10:58 PM $SVXY $CMG $FEYE $USO http://t.co/fAs6yERn8p
DE Asset Management
31 Jul 15 17:57:52
RT @PolgarStocks: SSRI Silver Standard Resources, Inc. Day High http://t.co/qsAJunzHeM $SSRI $USO $EEM $HD #SSRI #tradeideas #stock
DennyT
31 Jul 15 17:48:07
USO United States Oil Fund, LP % Change http://t.co/qs2YwsiPfu $USO $MNKD $XME $HD #USO #stockmarket #tradeideas
PolgarStocks
31 Jul 15 17:45:10
SSRI Silver Standard Resources, Inc. Day High http://t.co/qsAJunzHeM $SSRI $USO $EEM $HD #SSRI #tradeideas #stock
danrocks
31 Jul 15 17:41:03
MTVX APT MotoVox Group, Inc. Quotes http://t.co/xzKhgscSrJ $MTVX $DD $USO $USLV #MTVX #share #stock
IH NASDAQ OMX
31 Jul 15 17:36:38
FNMA Federal National Mortgage Financials http://t.co/HG2lKiHsHO $FNMA $USO $GOLD $UNG #FNMA #stock #stock
Sam
31 Jul 15 17:36:28
$HP $V $MA $USO $CY Friday Focus: August Storms Are Brewing? http://t.co/0FhOFExz4Y
jim50
31 Jul 15 17:30:37
AAPL Apple, Inc. Ex-Div Date http://t.co/ALElAZlkBo $AAPL $SSRI $CVM $USO #AAPL #stock #stock
Liberty Marketing
31 Jul 15 17:18:20
RT @H3bK11: Breaking News: WSJ: Amid oil sector's crumble, Exxon's edge may be M&A http://t.co/TKpowM2zfD $USO $OIL $UCO $UWTI
Chris
31 Jul 15 17:16:37
RT @fractalerts: New $USO alerts have recently been posted. Check them out now. http://t.co/CltILU44SN
fractalerts
31 Jul 15 17:15:45
New $USO alerts have recently been posted. Check them out now. http://t.co/CltILU44SN
Forex  News Insider.
31 Jul 15 17:12:08
Breaking News: WSJ: Amid oil sector's crumble, Exxon's edge may be M&A http://t.co/TKpowM2zfD $USO $OIL $UCO $UWTI
Dave Fry
31 Jul 15 17:09:03
$SPY $SPX $RUT $NDX $XLE $XLF $XLI $IBB $UUP $GDX $DBB $USO $FXI A Messy End To July http://t.co/shlZnsm3KW
Victor Mikhailovsky
31 Jul 15 16:48:46
RT @SA_Mergers: WSJ: Amid oil sector's crumble, Exxon's edge may be M&A http://t.co/veM4o7xd08 $USO $OIL $UCO $UWTI
Seeking Alpha Alerts
31 Jul 15 16:47:18
@CarlosMarinaL $USO WSJ: Amid oil sector's crumble, Exxon's edge may be M&A http://t.co/PGqjeolfyq
Seeking Alpha Alerts
31 Jul 15 16:47:17
@telescone $USO WSJ: Amid oil sector's crumble, Exxon's edge may be M&A http://t.co/PGqjeolfyq
Seeking Alpha Alerts
31 Jul 15 16:47:17
@brianwilbs $USO WSJ: Amid oil sector's crumble, Exxon's edge may be M&A http://t.co/PGqjeolfyq
Seeking Alpha Alerts
31 Jul 15 16:47:17
@tongban_com $USO WSJ: Amid oil sector's crumble, Exxon's edge may be M&A http://t.co/PGqjeolfyq
Seeking Alpha Alerts
31 Jul 15 16:47:17
@ANDRESM944 $USO WSJ: Amid oil sector's crumble, Exxon's edge may be M&A http://t.co/PGqjeolfyq
Seeking Alpha Alerts
31 Jul 15 16:47:16
@omriduek $USO WSJ: Amid oil sector's crumble, Exxon's edge may be M&A http://t.co/PGqjeolfyq
Seeking Alpha Alerts
31 Jul 15 16:47:16
@apppro1 $USO WSJ: Amid oil sector's crumble, Exxon's edge may be M&A http://t.co/PGqjeolfyq
Seeking Alpha Alerts
31 Jul 15 16:47:16
@jbulger1 $USO WSJ: Amid oil sector's crumble, Exxon's edge may be M&A http://t.co/PGqjeolfyq
Jake13
31 Jul 15 16:47:05
USO United States Oil Fund, LP Investor Opinions http://t.co/ZzQ8znVdFh $USO $ODFL $GNCP $WFC #USO #pennystocks #tradeideas
Quick Stock Ideas
31 Jul 15 16:46:32
WSJ: Amid oil sector's crumble, Exxon's edge may be M&A http://t.co/GyapmIpF14 $USO $OIL $UCO $UWTI
M&A News
31 Jul 15 16:46:31
WSJ: Amid oil sector's crumble, Exxon's edge may be M&A http://t.co/veM4o7xd08 $USO $OIL $UCO $UWTI
Top Market News
31 Jul 15 16:46:31
WSJ: Amid oil sector's crumble, Exxon's edge may be M&A http://t.co/bkjy4x0dE9 $USO $OIL $UCO $UWTI
Stocks On The Move
31 Jul 15 16:46:31
WSJ: Amid oil sector's crumble, Exxon's edge may be M&A http://t.co/jIz8jA0A9i $USO $OIL $UCO $UWTI
Energy Stocks SA
31 Jul 15 16:46:30
WSJ: Amid oil sector's crumble, Exxon's edge may be M&A http://t.co/isuMPzXkbE $USO $OIL $UCO $UWTI
Breaking News
31 Jul 15 16:46:30
WSJ: Amid oil sector's crumble, Exxon's edge may be M&A http://t.co/P5MaSrVkqS $USO $OIL $UCO $UWTI
Emylers
31 Jul 15 16:45:34
SVXY ProShares Short VIX Short-Term Futures ETF Last Price http://t.co/vyT7fZ11zj $SVXY $IBM $SPXL $USO #SVXY #stocks #stock
IH News Desk
31 Jul 15 16:43:04
OPK Opko Health Inc. Shares http://t.co/C49F3GPsDB $OPK $USO $MYEC $XLV #OPK #share #nasdaq
Bret Jensen
31 Jul 15 16:40:45
Dennis Gartman: U.S. Dollar Trade In 'Only The 4th Or 5th Inning' $USO $UUP http://t.co/iAHMgMLwyW via @benzinga
dailystockplays.com
31 Jul 15 16:24:29
Below Keltner http://t.co/qHJBI7P56U $USO $DNR $XOP $MRO $ATML $OIL $ROVI $ETN $TBT $XME $MON $GOV $ERX $ORIG $PES $PEIX $IRDM $EGN
James DiPlata
31 Jul 15 16:22:15
RT @tradewithjoe: New 100K Challenge Starting Soon - http://t.co/upDpfLHncf $AAPL $SPY $DIA $IWM $QQQ $USO $TSLA $GOOGL $NFLX $FB $GLD $GDX…
Dave Fry
31 Jul 15 16:21:35
$TUR $THD $EIDO $EWM $EWW $ECH $EPOL $ERY $JNUG $OIL $USO $UWTI Top 20 ETFs Daily Market Movers http://t.co/zqUdnrdoKD
Bradley
31 Jul 15 16:16:25
$TSLA $GOOGL $USO $C Friday Focus: August Storms Are Brewing? http://t.co/GiJ8PfwgVJ
Fake Chum Lee
31 Jul 15 16:12:50
RT @tradewithjoe: New 100K Challenge Starting Soon - http://t.co/upDpfLHncf $AAPL $SPY $DIA $IWM $QQQ $USO $TSLA $GOOGL $NFLX $FB $GLD $GDX…
IH News Desk
31 Jul 15 16:03:35
$USO News Updated Friday, July 31, 2015 6:10:56 PM $MDY $AMZN $GLD $QLD http://t.co/MhWJb6juZo
Lucky Jimmy
31 Jul 15 15:51:33
XOP SPDR S&P Oil & Gas Exploration & Production Index EOD Data http://t.co/2DOeZc4wNS $XOP $USO $GOOG $ZIOP #XOP #finance #nasdaq
leahanne
31 Jul 15 15:51:33
XRT SPDR S&P Retail Index Open http://t.co/NjKaCMYT65 $XRT $USO $SPXL $JNJ #XRT #nasdaq #finance
Gotham City Capital
31 Jul 15 15:51:28
#WTI #Crude $USO Here We Come $40-43/Barrel WTI!! http://t.co/TNJrps2L9w
Emylers
31 Jul 15 15:50:04
XLK Technology Select Sector SPDR Last Trade http://t.co/ogZGnZgeZ3 $XLK $USO $CNET $QID #XLK #pennystocks #investing
jim50
31 Jul 15 15:50:04
XLF Financials Select Sector SPDR Chart http://t.co/MZoZ3f2px4 $XLF $USO $HYG $EWS #XLF #invest #stockmarket
nicholas
31 Jul 15 15:50:01
clayton_dd: USO United States Oil Fund, LP Ex-Div Date http://t.co/Hn4YO2y6l3 $USO $XON $LNKD $FSLR #USO #trade… http://t.co/Z2kvWG3C1I
nicholas
31 Jul 15 15:49:55
nasdaqfan: USO United States Oil Fund, LP Chart http://t.co/no6lD8qgL6 $USO $ABX $ABBV $FV #USO #pennystocks #f… http://t.co/Z2kvWG3C1I
nicholas
31 Jul 15 15:49:52
rosnerstocks: USO United States Oil Fund, LP Dividend http://t.co/pkyWPaB3OR $USO $AMZN $AMZN $UUP #USO #financ… http://t.co/Z2kvWG3C1I
nicholas
31 Jul 15 15:49:51
Jim5011: USO United States Oil Fund, LP Stock Message Board http://t.co/S4PMigYQWO $USO $VRX $JCP $XHB #USO #in… http://t.co/Z2kvWG3C1I
				
				
By  +Follow October 15, 2013 9:53AM
Share:

Comments

 

blog comments powered by Disqus

 Today's Must Reads

Beyond Twitter: 5 Small-Cap Tech Plays Nobody’s Talking About


Will the Fed Continue Its Track Record of Unprecedented Moves?

Facebook versus Google: Who Rules the Internet?

Are These the Worst Business Documentaries on Netflix?


Saving the

Small-Cap Market

 

Small-cap stocks offer investors many benefits, ranging from higher growth potential to overlooked value opportuni... in Equities.com's Hangs on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register

LOG IN