USA stocks plummeted on Tuesday, with energy shares leading the losses after the International Energy Agency (IEA) projected a global glut of crude would persist into the first half of 2017.
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The Dow Jones industrial average was down 259.62 points, or 1.42 per cent, to 18,065.45, the S&P 500 had lost 33.89 points, or 1.56 per cent, to 2,125.30 and the Nasdaq Composite had dropped 65.07 points, or 1.25 per cent, to 5,146.61.
In its September oil market report, the organization said Tuesday it anticipates global demand growth to rise by 1.3 million barrels a day in 2016 – 100,000 below the previous forecast.
On the New York Mercantile Exchange, a barrel of West Texas Intermediate for October delivery fell US$1.39 to finish at US$44.90.
After gains in June and July, global oil supplies dropped by 300,000 barrels per day last month, to 96.9 mb/d.
U.S. stocks fell sharply on Tuesday led by a sell-off in energy shares, which finished the day 2.9% lower, and financials dropping on diminished prospects of a near-term rate hike. Apple shares bucked the trend, trading 2.4% higher.
Exxon Mobil sank $2.08, or 2.4 percent, to $85.21 and Marathon Oil stumbled $1.13, or 7.3 percent, to $14.34. Anadarko stock dipped 23 cents to $57.56 and Freeport-McMoRan fell 99 cents, or 9 percent, to $10.09.
Investment in low-carbon renewable energy reached $315 billion in 2015, making up 17 percent of the total.
Even when prices fell below $30 a barrel in January, the Kingdom kept increasing its oil production – a strategy to preserve and raise its share in the global oil market, and to force high-cost oil producers, like the USA, out of the market.
Long-dated Treasury yields rose to their highest levels in around three months on Tuesday on heavy Treasury and corporate debt supply and on concerns about global central bank policy.
Thirty-year US yields US30YT=RR held just below 2-1/2-month highs at 2.49 percent on Tuesday.
Prices rose during NY trading, getting a lift from a report from data provider Genscape Inc. that showed tanks in the Cushing, Okla., storage hub fell by more than 1.2 million barrels last week.
On the other hand, the shorts who were forced to cover their positions in the massive short squeeze of 56,907 futures and options contracts in the week ended August 1-the biggest since 2006-following rumors of a production freeze discussion by the OPEC in Algiers are sensing an opportunity to short again.
MSCI’s all-country world stock index was down 1.3 percent, while European shares. closed down 1 percent, marking their fourth down day.
Spot gold was down 0.7 percent at $1,317.47 an ounce by 3:03 p.m. EDT (1903 GMT).
Netflix Inc. fell 3% after Macquarie downgraded the streaming giant to underperform from neutral, citing challenges expanding overseas and maintaining its market share in North America.
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The U.S. dollar index was up 0.3 per cent. Asian stocks mostly rallied.
