Crude oil prices continues to drop in the Asian trading session around $85 Pb with increasing expectation that china -the largest oil consumer in the world- will increase its benchmark rates following the increase in inflation levels along with worldwide pressure to re-evaluate the Yuan.Fears are escalating from inflation levels in china that accompanied the skyrocketing growth reaching around 10% in the past five years, along with huge amounts of liquidity overflow in markets, leading investors to believe that the people's bank of china is going to hike rates more the 25 basis points done last month, but more to come in the upcoming periods.
China has faced worldwide demands in the latest G20 meeting to re-evaluate the Yuan, hoping to achieve a worldwide balance in the currencies markets, and avoid what has been lately described as the currencies war, which allows a better chance for the global economy to recover.
December future light sweet crude oil contracts started trading Friday around $87.70 but closed way lower at the $84.82 after recording a low of $84.52.
Today; the main focus of the economic calendar is the U.S. retail sales numbers which is not expected to show any improvement, affected by an overall slow in the economy and higher unemployment and less spending, while the NY manufacturing index is expected to show a decline highlighting the decreasing global demand, and the problems the global economy is having now, eventually driving demand on energies lower and lower.
S&P GSCI index is trading at 02:54 EST around 583.00 with a total increase of 0.99, while RJ/CRB major commodity index has retrieved bye 11.25 points closing Friday at 303.60.
Motor oil future contracts inclined to $221.750 per gallon, with a change of $30.760, while heating oil is trading around 237.260 per gallon, after an increase of $0.940, while natura gas future contracts has increased by 0.025 recording $3.824.
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