Global Stock Markets Trading Sharply Lower

On June 25, 2012 by TradingDesk

The Euro has dropped below 1.25 vs the dollar this morning, pushing oil prices lower despite the temporary disruptions to production and delivery in the Gulf Coast caused by tropical storm Debby. Forecasts for the storm show that it will continue its idle pace, before weakening and making land fall along the Florida panhandle Thursday or Friday. The storm is not predicted to reach hurricane strength, should not have any lasting impact on oil infrastructure, and poses no threat to Dallas.

With global stock markets trading sharply lower, energy prices are poised to test their lows for the year this week, although July RBOB remains an outlier due to a shortage of reformulated material in the NY Harbor delivery area, which is causing a 35 cent premium over conventional gasoline stocks. $75 will be a major support level for WTI. The major news events for the week will be a NATO meeting tomorrow, to discuss what actions will be taken in Syria, and an EU summit where leaders will continue to face pressure to do something productive as Euro zone countries continue to slip into insolvency.

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