Crude Oil Drops as Corporate Earnings Miss Estimates
Crude oil declined as companies’ earnings missed estimates. The forecasts for future profits also worsened. Faurecia, the bigger European maker of car interiors, reduced its outlook for sales in the fourth quarter. The quarterly profit of Posco (
The general market sentiment was negative for crude as traders were reluctant to buy commodities among signs of global economic slowdown. The Standard & Poor’s GSCI Index dropped as much as 1.4 percent today. The S&P 500 Index was also down 1.4 percent.
Amid all the negative factor, there was some good news for oil. The Keystone pipeline will return to full capacity only in about a month. That means less additional supply, leading to smaller downside pressure on crude.
Crude oil (light sweet) fell from $88.86 to close at $86.55 per barrel on NYMEX today. The daily low of $85.70 was the lowest since July 12.
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