Friday, November 12, 2010
Bloomberg: Crude Oil Falls From Two Year High on Speculation China May Raise Interest Rates
“For the time being $90 is going to be a very strong resistance level; above that, it’s too expensive,” said Andy Sommer, a senior analyst at EGL AG in Dietikon, Switzerland. “There’s a lot of uncertainty about Chinese monetary policy. If they tighten further, that has implications for the oil market.”
Crude for December delivery fell as much as $2.30, or 2.6 percent, to $85.51 a barrel in electronic trading on the New York Mercantile Exchange. It was at $86.08 at 1:15 p.m. London time. Yesterday, the contract rose to $88.63, the highest price since Oct. 9, 2008. Brent crude for December settlement fell as much as $2.16, or 2.4 percent, to $86.65 a barrel on the ICE Futures Europe exchange in London. The contract expires Nov. 15. The more actively traded January futures fell $1.59 to $87.51.
The MSCI Asia Pacific Index retreated 1.4 percent. The Stoxx Europe 600 Index fell as much as 1.8 percent and Standard & Poor’s 500 Index futures slid 1.5 percent. China’s inflation rate rose to the fastest in two years last month, fueling speculation an interest-rate increase is imminent. “People are betting on the Chinese rates and the discussions in the G-20 meeting are responsible for the current heavy selloff,” said Tetsu Emori, a commodity fund manager at Astmax Co. in Tokyo.......Read the entire article.
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