Crude Oil Fluctuates as U.S. Equities Drop
Source: Bloomberg, Mark Shenk (10/28/10)
"Oil is 'tracking the S&P 500 more than anything else.'"
Oil slipped as much as 0.3% after the Standard & Poor's 500 Index wiped out a rally that was fueled by higher- than-forecast results at Exxon Mobil Corp. Oil climbed earlier today as the dollar fell against the euro for the first time in three days, bolstering the appeal of commodities.
"Oil is tracking the S&P 500 more than anything else," said Tim Evans, an energy analyst with Citi Futures Perspective in New York.
Crude oil for December delivery declined $0.19 to $81.75 a barrel at 10:55 a.m. on the New York Mercantile Exchange. Futures climbed as much as $0.70, or 0.9%, to $82.64.
Brent crude oil for December settlement slipped $0.03 to $83.20 a barrel on the London-based ICE Futures Europe exchange.
The S&P 500 slipped 0.1% to 1,181.15 at 10:50 a.m. in New York after climbing as much as 0.6%. The Dow Jones Industrial Average decreased 22.59 points, or 0.2%, to 11,103.69.
The dollar fell as the Federal Reserve considers buying government debt. Estimates for the size of the asset-purchase program range from $1 trillion at Bank of America-Merrill Lynch to $2 trillion at Goldman Sachs Group Inc. Economists at both firms agree the Fed will likely start by announcing a $500 billion plan after a meeting on Nov. 2 and Nov. 3.
The U.S. currency slumped as much as 1.1% to $1.3914 against the euro, before trading at $1.3901 at 10:51 a.m.
U.S. gross domestic product rose at a 2% annual pace in the third quarter, up from a 1.7% rate in the previous three months, based on the median forecast in a Bloomberg News poll of economists before a Commerce Department report tomorrow.