Posted on 10/21/2008 5:14:48 AM PDT by thackney
ICE Brent futures were trading 55 cents/barrel lower at $71.48/b Tuesday during morning European trade, but volumes were on the low side and trading was mostly quiet ahead of the expiry of the NYMEX November light, sweet crude contract.
NYMEX November crude futures were trading 51 cents/b lower at $73.74/b at 10:05 GMT.
"November WTI expires today and given the distortion of the previous expiry we would expect many market participants to stay on the sidelines fearing the repeat of the firework display seen a month ago," Olivier Jakob, Petromatrix analyst, said in a report.
Signs of recovery in the US economy were supportive of commodity prices Monday, sources said, but energy futures did not hold on to yesterday's gains despite the US Dollar Index on ICE extending its four-week rally.
The index was trading 3 points higher at 83.40 points at 10:05 GMT.
Meanwhile, Asian stocks were little impressed with yesterday's over 400-point gain in the Dow Jones Industrial Average.
Hong Kong share prices closed down 1.8% on Tuesday, AFP reported. And Singapore shared closed 0.95% lower.
"I'm not getting carried away and suggesting the credit crisis is over but the recent 'bank bailout package' appears to be having the desired affect. Asian markets are up but not reflecting the same US enthusiasm," Robert Laughlin, analyst at MF Global, said in a report.
On more fundamental news, the market's focus was still on the upcoming OPEC meeting Friday, which sources expect will lead to a production cut by the oil-producers club (see stories 0820 and 0839 GMT).
"The approach of the OPEC meeting combined with some support from equities transferred into support for crude oil, but the general trend is still of uncertainty," Jakob added.
Looks like they don’t expect a repeat of last month’s wild ride at the end.
Then again, who really expected it last month?
Russia says will not talk output cuts with OPEC
Uh huh....
Why would they?
Let OPEC make the cuts, Russia will reap the reward of higher prices and just try to produce more.
ANOTHER CRISIS -
Get Reid & Pelosi on the job now!
But saying they’re not gonna talk about it? Snort :)
That situation doesn't seem to obtain just now. Given crude below $80 and the mkt in contango, Cushing has as much stock as it wants to (or can) keep. Bar some very odd development happening immediately, another squeeze is just not on the cards.
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