Stocks Drop As Crude Oil Resumes Its Downward Trend

VOLEuropean shares are trading mostly lower and U.S. stocks are under pressure in early trading on Monday as the drop in crude oil prices and commodities weaken investor sentiment during a shortened week with lower trading volume.

WTI (NYMEX) February 16 futures are down $0.89 (2.42 percent) to $37.17 a barrel and Brent Crude is trading 2.08 percent lower, giving back some of the short covering gains from last week after lower U.S. inventory and a World Report from OPEC points to oil rebounding in the 3rd quarter of 2016.

In the near term of 2016, crude oil prices remain under pressure due to a glut in global crude oil with more Iranian oil expected to come online due to sanctions being removed combined with a decision this month by the U.S government to end a 40 year old ban on exporting oil.

-Johnathan Schweitzer

 

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