Oil fell to the lowest level in more than eight months as investors fled commodities for assets such as Treasury bills and gold after Standard & Poor’s downgraded the U.S. credit rating for the first time.
Futures dropped 6.4 percent on the first trading day after the ratings service cut the U.S. one level to AA+ late on Aug. 5 and kept the outlook at “negative.” Two-year Treasury yields fell to a record low and gold touched a record high on the Comex in New York. The MSCI All-Country World Index of stocks slid as much as 5.1 percent.
“There’s flight away from any kind of risky assets at the moment,” said Tom Bentz, a broker with BNP Paribas Commodity Futures Inc. in New York. “It’s hard to say where the bottom is.”
Oil for September delivery fell $5.57 to $81.31 on the New York Mercantile Exchange, the lowest settlement since Nov. 23. It was the biggest one-day decline since futures tumbled 8.6 percent on May 5. Crude has fallen 15 percent in August and 11 percent in 2011.
New York futures have tumbled 29 percent since reaching a two-year high of $114.83 in intraday trading on May 2. Implied volatility for at-the-money options expiring in September, a measure of expected price swings in futures and a gauge of options prices, was at 68.7 percent at 3 p.m. in New York, up from 40.9 percent Aug. 5.
Brent crude for September settlement on the London-based ICE Futures Europe exchange decreased $5.63, or 5.2 percent, to settle at $103.74 a barrel. The European benchmark contract was at a $22.43 premium to U.S. futures, near the record $22.67 spread based on settlement prices Aug. 2. Read More
Selasa, 09 Agustus 2011
Oil Falls to Eight-Month Low in New York as Investors Buy Treasuries, Gold - Bloomberg
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