23 Oct 2013
Oil prices sink amidst risk aversion due to Chinese overnight rates spike
FXstreet.com (Athens) – Oil prices are heading downwards on both side of the Atlantic ocean – despite the fact that the greenback is collapsing with DXY hitting an 8-month low – mostly due to China “woes.”
Oil “caches a cold” as China “sneezes”; risk hits the “snooze” button
Risk appetite is diminished across the board since the news wires rumors suggested that “Central Bank of China refrained from adding funds to the market pushing money market rates higher,” as well as “China’s biggest banks tripled the amount of bad loans written off in the first half, cleaning up their books ahead of what may be a fresh wave of defaults,” dragging down immensely the Asian bourses.” Briefly, oil is currently trading at 97.47, down 0.14% (4-month lowest level), while Brent oil is moving also downwards at 109.20 (-0.75%). What’s more, traders should bear in mind that on Monday tumbled below $100 a barrel for the first time since July, while the discount versus European Brent hit its widest in six months as diminished Midwest inventories began to grow.
Oil “caches a cold” as China “sneezes”; risk hits the “snooze” button
Risk appetite is diminished across the board since the news wires rumors suggested that “Central Bank of China refrained from adding funds to the market pushing money market rates higher,” as well as “China’s biggest banks tripled the amount of bad loans written off in the first half, cleaning up their books ahead of what may be a fresh wave of defaults,” dragging down immensely the Asian bourses.” Briefly, oil is currently trading at 97.47, down 0.14% (4-month lowest level), while Brent oil is moving also downwards at 109.20 (-0.75%). What’s more, traders should bear in mind that on Monday tumbled below $100 a barrel for the first time since July, while the discount versus European Brent hit its widest in six months as diminished Midwest inventories began to grow.