Oil Falls as Global Equities Slip, BP Up on Abu Dhabi Talks; Gold Drops as Dollar Rises

By MidnightTrader.com Staff,

Shutterstock photo

Oil is on the decline in early morning trade with equity prices worldwide slipping on fears about the global economic outlook. BP plc ( BP ) is up before the bell on the NYSE as CEO Tony Hayward met with Abu Dhabi's Crown Prince Mohammed bin Zayed Al Nahyan to discuss the possibility of the sheikhdom buying up to 10% of shares in the company.

Gold too is taking a beating as the dollar strengthens against the euro, making it more expensive for non-greenback investors to shore up the yellow metal. In addition, the precious metal has been hurt after China's State Administration of Foreign Exchange said that gold will not be a major component of the central bank's portfolio.

At 0755 ET, Brent crude is up 0.8% at $72.00 a barrel, while light sweet crude is up 0.7% at $72.49 a barrel, and natural gas is up 0.3% at $4.69 a million British thermal units.

Gold is down 0.3% at $1,191.50 an ounce, while silver is 0.9% weaker at $17.70 an ounce, and copper is up 0.1% at $2.97 a pound.

The U.S. Environmental Protection Agency's regulatory changes announced Tuesday to reduce smog and acid rain may lead some energy companies to shut down some of their power plants. Coal-fueled electricity producers American Electric Power Co. ( AEP ) and Southern Co. ( SO ) are expected to be hard hit by the reform measures to take effect in 2012.

Hercules Offshore Inc ( HERO ) said Chevron Corp ( CVX ) lifted a force majeure on a shallow water drilling rig in the Gulf of Mexico after Chevron received a permit to drill a new well.

Exxon Mobil Corp. ( XOM ) began evacuating non-essential personnel from offshore Gulf of Mexico facilities ahead of a tropical disturbance.

In the mining sector, Canadian gold mining group Aurizon Mines Ltd ( ARZ ) formed a joint venture with Niogold Mining Corp ( NOX ) to develop the Marban Block property in Quebec. Aurizon will earn a 50% interest in the project, subject to incurring expenditures totaling 20 million Canadian dollars over the next three years, of which 5 million Canadian dollars will be spent in the first year.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: AEP , ARZ , BP , CVX , HERO , NOX , SO , XOM

More from MT Newswires


MT Newswires

MT Newswires

Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com