19 Dec 2014
Brent closed below $60 for the first time in since May 2009 – DB
FXStreet (Barcelona) - The Deutsche Bank Research Team note that it was yet another day of volatility in oil markets, however with significant intraday high-to-low ranges for both WTI (7.97%) and Brent (7.11%), further sharing that Brent closed below $60 for the first time since May, 2009.
Key Quotes
“The S&P 500 (+2.40%) saw its best 2-day gain (+4.49%) since November 2011 with the Dow (+2.43%) last night seeing its best single-day gain since December 2011. The S&P 500 is now back to just 0.7% off its December 5th highs. Most of the wires seem to link it to the Fed being dovish and using the word 'patient' but the truth is that you could equally say that Yellen made some surprisingly hawkish comments given all that has been going on of late.”
“In reality equity markets were also given a late boost from a turnaround in energy stocks despite what turned out to be a weak day for oil overall. The energy component of the S&P 500 closed +2.13% with the bulk of the gains coming in the last hour of trading as both WTI and Brent rallied 1%-1.5% off their intraday lows at the end of the US session.”
“It was in fact another day of volatility in oil markets however with significant intraday high-to-low ranges for both WTI (7.97%) and Brent (7.11%). After both grades traded as high as +4% in the morning, WTI (-4.18%) and Brent (-3.12%) closed weaker, dropping to $54.11/bbl and $59.27 respectively – the latter closing below $60 for the first time since May 2009.”
“Comments from the Saudi Arabia oil minister Al-Naimi did little to calm the oil market. Specifically the minister said that ‘it is difficult, if not impossible', that the kingdom or OPEC would carry out any action that may result in a reduction of its share in market and an increase of others.”
“Although the minister did provide some hope for those hoping that the current drop in prices is more of a temporary thing, stating that ‘what we are facing now and what the world is facing is a temporary situation and will pass’.”
Key Quotes
“The S&P 500 (+2.40%) saw its best 2-day gain (+4.49%) since November 2011 with the Dow (+2.43%) last night seeing its best single-day gain since December 2011. The S&P 500 is now back to just 0.7% off its December 5th highs. Most of the wires seem to link it to the Fed being dovish and using the word 'patient' but the truth is that you could equally say that Yellen made some surprisingly hawkish comments given all that has been going on of late.”
“In reality equity markets were also given a late boost from a turnaround in energy stocks despite what turned out to be a weak day for oil overall. The energy component of the S&P 500 closed +2.13% with the bulk of the gains coming in the last hour of trading as both WTI and Brent rallied 1%-1.5% off their intraday lows at the end of the US session.”
“It was in fact another day of volatility in oil markets however with significant intraday high-to-low ranges for both WTI (7.97%) and Brent (7.11%). After both grades traded as high as +4% in the morning, WTI (-4.18%) and Brent (-3.12%) closed weaker, dropping to $54.11/bbl and $59.27 respectively – the latter closing below $60 for the first time since May 2009.”
“Comments from the Saudi Arabia oil minister Al-Naimi did little to calm the oil market. Specifically the minister said that ‘it is difficult, if not impossible', that the kingdom or OPEC would carry out any action that may result in a reduction of its share in market and an increase of others.”
“Although the minister did provide some hope for those hoping that the current drop in prices is more of a temporary thing, stating that ‘what we are facing now and what the world is facing is a temporary situation and will pass’.”