MoneyNews.com
15 Jun 2011
Oil slid more than 4 percent on Wednesday, as signs of further economic weakness fed demand worries and a rising dollar also weighed, triggering technical sell-stops and sending U.S. crude to its lowest level since February.
U.S. crude weakened early on data showing a rise in core inflation and shrinking New York manufacturing. It succumbed to intensifying selling pressure as it broke below the 150-day moving average and $95 key support. That eradicated brief gains after a big drop in weekly U.S. crude stocks, reported mid-morning.
“It’s a rush for the exits. The market has been overvalued for some time now…the Brent market has been a bubble and the bubble is bursting today,” said Tim Evans, energy analyst at Citi Futures Perspective.
“In my opinion, WTI would be fairly valued at $85 a barrel and Brent at $90 a barrel,” Evans added.
The slump came as the U.S. dollar extended gains for its biggest daily rise since September, with the dollar index up 1.8 percent, while the S&P 500 stock index tumbled by more than 1.6 percent to its lowest level since March.
The euro slid against the dollar, heading for its worst day in more than a month as investors fretted about the Greek debt crisis.
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Related: EPA Administrator Lisa Jackson Lashes Out at Utility Companies For Spilling the Beans on Obama’s Job-Killing Policies at GatewayPundit
…American Electric Power announced this week that the latest Obama EPA regulations will cost the company at least 600 jobs and over $6 billion which will be pushed on consumers.
Today, Barack Obama’s horrible EPA Administrator Lisa Jackson lashed out at utility companies for revealing the economic destruction of her department’s policies. She then claimed her administration’s policies will prevent premature deaths…
