The Dow Jones industrial average gave up 176 points, or 1 percent, to 18,149 as of 10:07 a.m.
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THE QUOTE: “Another nail in the coffin overnight, as both OPEC and the International Energy Agency, revised their oil demand figures for 2017 down”, said Jeffrey Halley, senior market analyst at Oanda.
The International Energy Agency said it expects slower growth in demand for oil this year.
Crude prices rose Monday, pushed higher by a weaker dollar and a report by a private data provider indicating that crude stocks at the key storage hub in Cushing, Okla., declined sharply last week.
Nasdaq 100 e-minis were down 25.25 points, or 0.53 percent, on volume of 11,366 contracts. Eastern time. The Standard & Poor’s 500 index fell 32 points, or 1.5 percent, to 2,127.
A Reuters poll forecast that USA commercial crude oil stocks are likely to have risen last week after marking the largest plunge since 1999 in the previous week.
Goldman Sachs also further cut its view on the likelihood of a rate hike next week, dropping it to just 25 per cent from 40 per cent after the final round of Fed speakers on Monday. The price of oil has plunged over the last two years as an enormous supply glut built up while growth in demand slowed. Seoul shipped in 1.1 million tonnes of crude oil from Iran, or 260,770 barrels per day (bpd), versus 552,710 tonnes imported a year earlier when sanctions against Tehran were still in place, South Korean customs data showed on Thursday.
Oil prices fell 1 percent on Wednesday, extending their tumble ahead of data likely to show USA crude stockpiles had risen last week after a one-week reprieve.
US crude inventory data is due on Tuesday and Wednesday.
Long-dated US bond yields rose to their highest levels in about three months, while the USA dollar edged up. But a 3.3 million-barrel climb was expected by analysts polled by S&P Global Platts and the American Petroleum Institute late Tuesday reported an increase of 1.4 million barrels.
Apple was up 1.7 percent at $107.20 in premarket trading after Sprint said pre-orders for the latest iPhones increased almost four times.
October gasoline RBZ6, -1.57% fell 2.6 cents, or 1.9%, to $1.351 a gallon on Nymex, while October heating oil HOV6, -2.46% traded at $1.388 a gallon, down 3.5 cents, or 2.5%.
The stock was the only gainer on the Dow and chiefly responsible for the tech sector falling the least, 0.25 per cent, among the 10 major S&P sectors.
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Even Apple’s 2.3 per cent gain, after two United States carriers reported strong demand for the new iPhones, was not enough to pull up the indexes. The euro fell to $1.1228 from $1.1241. “We would be much more enthusiastic about selling rallies toward the high side of these parameters”.
