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.


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

Results for uso
Stark Sands
6 Mar 15 06:05:30
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Bradley
6 Mar 15 06:04:16
$TSLA $GOOGL $USO $C March 6th, 2015 Watch List - Update from Option Millionaires - Stock Options Chatroom Markets... http://t.co/R2VjRwk2ns
Rick Loucks
6 Mar 15 06:01:49
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
SpideyTrader
6 Mar 15 05:59:48
WATCHING CLOSELY: $SPY, $XLE, $USO, $AAPL, $DUST, $GERN, $FNSR, $MRVL, $CSIQ
Bill T
6 Mar 15 05:59:27
@BoB2Trader $USO $XLE $VDE $70 brent oil by the end of this year, and then higher after that.
Bill T
6 Mar 15 05:58:57
My two-cents on the future price of oil $USO: declining supply as producers trim capital budgets will help drive Brent oil up to $70/barrel
Bronson
6 Mar 15 05:58:28
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Lisa Fabio
6 Mar 15 05:55:31
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
JonDeRaps
6 Mar 15 05:54:07
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Allen Wastler
6 Mar 15 05:52:36
Top stock lookups on http://t.co/dw39TK5QXW ysty: $AAPL, $BABA, $BAC, $FB, $C, $GE, $LL, $ABBV, $SPY, $XOM, $TSLA, $F, $USO, $GPRO, $GILD,
Dan Helfers
6 Mar 15 05:51:44
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Live Trade Room
6 Mar 15 05:50:50
Birth/Death (USA) rate +132K (Prev. -275K) $CL_F $USO $GC_F $NG_F $SI_F $ES_F $SPX http://t.co/tR3DuUIhf4
Do Over Books
6 Mar 15 05:48:15
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Jason Volmut
6 Mar 15 05:44:20
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Herbert R Tarlic Jr
6 Mar 15 05:41:31
@big7x7 Lookie $USO shit the bed. Shocking.
Evyatar Gour
6 Mar 15 05:40:33
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Michael Levy
6 Mar 15 05:36:08
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
CCPtwo
6 Mar 15 05:35:08
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Live Trade Room
6 Mar 15 05:35:00
Average US Hourly Earnings (Feb) M/M 0.1% vs. Exp. 0.2% $CL_F $USO $GC_F $NG_F $SI_F $ES_F $SPX http://t.co/rAYThqT4xg
Live Trade Room
6 Mar 15 05:34:32
Change in US Nonfarm Payrolls (Feb) M/M 295K vs. Exp. 235K $CL_F $USO $GC_F $NG_F $SI_F $ES_F $SPX http://t.co/cA7giPcqAX
Live Trade Room
6 Mar 15 05:34:03
US Unemployment Rate (Feb) M/M 5.5% vs. Exp. 5.6% $CL_F $USO $GC_F $NG_F $SI_F $ES_F $SPX http://t.co/6gzkH17A9w
Live Trade Room
6 Mar 15 05:33:40
US Trade Balance (USD) (Feb) M/M -41.8bln vs. Exp. -41.1bln $CL_F $USO $GC_F $NG_F $SI_F $ES_F $SPX http://t.co/2lwCVEIDKt
VirusFighter Dallas
6 Mar 15 05:33:17
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Chris Wahl
6 Mar 15 05:31:57
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Aaron Lea
6 Mar 15 05:30:32
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Sherry Moore
6 Mar 15 05:27:08
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Greg
6 Mar 15 05:26:55
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Live Trade Room
6 Mar 15 05:25:25
Consensus: Non-Farm Payrolls M/M Exp. 235K/Private Payrolls 225K/ Manufat. 10K/ Unemployment 5.6% $CL_F $USO $GC_F $NG_F $SI_F $ES_F $SPX
Todd Keefe
6 Mar 15 05:23:53
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Kristin Devoto
6 Mar 15 05:22:50
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
banksy
6 Mar 15 05:20:49
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
THLleong
6 Mar 15 05:20:10
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Live Trade Room
6 Mar 15 05:19:39
Good Morning Traders! NFP Friday! Morning Prep done & we r ready to rock! $CL_F $USO $GC_F $NG_F $SI_F $ES_F $SPX http://t.co/7qb9q0lF02
GARY DIGIORGIO
6 Mar 15 05:19:15
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
GaryGruber
6 Mar 15 05:17:56
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Live Trade Room
6 Mar 15 05:17:52
Baltic Dry Index rises to 565 points up 0.7% $CL_F $USO $GC_F $NG_F $SI_F $ES_F $SPX http://t.co/1qtDDHDE1x
Langbridge
6 Mar 15 05:16:11
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
PolgarStocks
6 Mar 15 05:16:08
$USO Financials Updated Friday, March 6, 2015 08:07:13 AM $BIIB $FB $CEHC $GRCU http://t.co/54ZqrPh2Fr
craig lefebvre
6 Mar 15 05:14:38
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Fractal Trading
6 Mar 15 05:14:30
Confidently trade $USO Crude http://t.co/lnnd6G6A5v
Jess Ferko
6 Mar 15 05:11:18
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Cycle30
6 Mar 15 05:09:13
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
AmyK Hutchens
6 Mar 15 05:07:59
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Adrienne Leigh Hoyt
6 Mar 15 05:06:09
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Effie Brunson
6 Mar 15 05:04:23
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Fake Bo Pelini
6 Mar 15 05:02:23
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Elliot Loh
6 Mar 15 05:00:28
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
Four Leaf Ent
6 Mar 15 04:58:49
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
TPSS Voice
6 Mar 15 04:56:44
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
momentumproject
6 Mar 15 04:55:11
RT @philstockworld: #PhilStockWorld Morning Market News Ahead of Non-Farm Payroll Report: $EWJ $FXI $USO $SLV -- http://t.co/BBbWoLRcd2 htt…
				
				
By  +Follow October 15, 2013 9:53AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

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