Crude oil fell to a one month low in New York after equities dropped on President Barack Obama’s proposed restrictions on risk taking at financial institutions and on speculation China will raise interest rates. Oil fell as much as 2 percent as stocks tumbled on the U.S. plan to bar banks from trading for their own accounts. U.S. refineries ran at 78.4 percent of capacity last week, the lowest rate outside the Atlantic hurricane season since at least 1989, an Energy Department report yesterday showed.
“We’re watching the stock market and what’s going on in China,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “The market is still digesting the massive drop of the last couple days, so we probably won’t see any big move in the next couple days.” Crude oil for March delivery declined $1.17, or 1.5 percent, to $74.91 a barrel at 10:15 a.m. on the New York Mercantile Exchange. Futures touched $74.58, the lowest level since Dec. 23. March oil has dropped 4.4 percent this week as declines in equity markets dented investor confidence and a stronger dollar reduced the appeal of commodities as an alternate investment.....Read the entire article.
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