Tuesday, July 12, 2011

speaking of the Bear


- """Crude futures were lower Tuesday as the debt crisis in Europe fed into ongoing concerns over the state of the global economic recovery and left investors wary of risky assets.

"Today is mostly about concerns over further contagion of the debt troubles in Europe," said Eugen Weinberg, head of commodities research at Commerzbank. This is dragging on the overall equity market and the euro and weighing on oil prices, he added.

At 1000 GMT, the front-month August Brent contract on London's ICE futures exchange was $1.67, or 1.4%, lower at $115.57 a barrel.

The front-month August contract on the New York Mercantile Exchange was trading down 95 cents or 1%, at $94.20 per barrel.

Earlier in the day, Brent fell more than $2.00 as the euro slumped to a five- month low amid worries that the problems in Greece could spread to Italy and uncertainty over the status of the Greek bailout.

A weaker euro is negative for oil as the dollar-denominated commodity then becomes more expensive for holders of other currencies.

At 1000 GMT, the euro was at $1.39311, down from $1.4032 in late New York Monday trade.

The problems in the euro-zone contributed to concerns that the global economy is not experiencing the recovery many had hoped for, suggesting oil demand might not grow as much as many expected.

Signs emerged over the weekend that China has not yet tamed its inflation, fuelling worries that additional monetary tightening is on the horizon, and this could dampen oil demand in the world's second-largest consumer.

Meanwhile, dismal unemployment data from the U.S. Friday fuelled concerns in markets and among households alike that the country may be in for a much longer slump than originally expected.

Investors may now turn their attention to the weekly U.S. inventory data from industry group, the American Petroleum Institute, later Tuesday and the U.S. Department of Energy on Wednesday, for fresh indicators on the health of demand. However, analysts said the data could have less of an impact than usual as traders remained concerned with macro-economic drivers.

"It will depend whether [the data] feeds into the market sentiment that day," said Commerzbank's Weinberg. If it does, it could accelerate moves in one direction or the other, but if it's no surprise the market might ignore it, he added.

At 1000 GMT, the ICE's gasoil contract for August delivery was down $2.75, or 0.3%, at $956.00 per metric ton, while Nymex gasoline for August delivery was 291 points, or 1%, lower at $3.0414 per gallon."""
Ho -hum, you say--yet a five dollar decrease in crude futures to some Deep Pockets (in for at least two hundred grand or so), means....he just lost his S series benz (or mo')

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