West Texas Intermediate (WTI) light sweet crude oil for December delivery was sliding $1.07 to $92.25 a barrel, and the December Brent crude contract was behind by 79 cents to $109.12.
Oil prices backpedaled into negative territory following last week's rally, after the Japanese government carried out an intervention overnight to sell the yen. The Ministry of Finance's intervention, according to reports, may have involved as much as 7 trillion yen. The record-high yen-dollar levels were really putting a damper on the Japanese export industry, and the devaluation was a much-needed move for the country.
The dollar was jumping 1.2% to $75.94 against a basket of currencies corresponding to top U.S. trading partners, up 2.8% against the yen and up 1.1% against the euro. The euro took a tumble as traders questioned the ability of European leaders to raise the bailout funds required to keep the region's debt crisis in check. The general lack of clarity on the bailout funds as well China's silence on whether it would be helping with this kept traders cautious."It's a scary start to Halloween as economic concerns are putting the frighteners on general markets," said Matt Smith, commodity analyst at Schneider Electric's Summit Energy. "Today we see the optimism from last week disappear like a phantom." PFG Best's senior energy analyst Phil Flynn thinks the near-term dollar strength that's been pressuring oil Monday could last until at least the middle of the week. Oil, priced in dollars, becomes more expensive for buyers to purchase when the currency is rallying. "With the Japanese spending a bunch of money with the interventions and seeing it's the end of the month,
>To contact the writer of this article, click here: Andrea Tse.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV