Crude Slide Continues
- Wednesday, December 10, 2008, 10:06
NYMEX Crude Oil traded lower to under $48 in electronic trading during Asian hours. At one point in the session the front month contract hit $47.58.
Asian markets are suffering across the board on the back of sizable declines in the U.S on Monday.
“We’re seeing extreme pressure on crude right now, primarily due to the slide in equity markets” remarked one trader. “People are talking about a bottom at $40 - 45, and it seems like the market wants to test that.”
Tommorrow the MasterCard SpendingPulse gasoline demand data comes out, and traders are watching for further signs of a demand rebound in the U.S. The past few Mastercard reports have shown a dramatic reduction in year-over-year demand destruction, but traders are cautious to acknowledge the data since weekly data is prone to statistical aberrations.
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