Monday, July 19, 2010

Commodities: Equity headwinds take oil lower


Date: Monday 19 Jul 2010
Oil fell almost 1% on Friday, tracking a decline among US stocks, following a weaker than expected consumer sentiment report and disappointing earnings.

Crude for August delivery fell 61 cents to $76.01 a barrel on the New York Mercantile Exchange. The contract was down 0.1% for the week, despite hitting a high of $78.15 a barrel on Wednesday, and in contrast to the previous week’s 5.5% gain.

Confidence was rattled by The University of Michigan’s preliminary index of consumer sentiment, which fell to 66.5 compared to 76 in June. Analysts had pencilled in a more modest decline.

Earnings didn’t provide much cheer either. The Dow fell as much as 250 points as Bank of America and General Electric reported disappointing second quarter results.

Gold for August delivery declined $20.10 to $1188.20 an ounce on Friday amid fading concern about inflation and the decline in consumer sentiment. 

Posted by suprastock at 7/19/2010 10:44:00 AM

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