Oil Plummets Sharply In Asia

Oil......

Crude oil futures plummeted sharply in the electronic trading Monday pressured by losses in the Asian equities and the US stock futures on details of a bailout of Cyprus over the weekend, which fretted investors about the potential implications of a decision to levy private bank deposits.
The losses for Asian stocks and the euro came after Cyprus announced plans for a one-off levy on bank deposits in exchange for equity in the banks as part of a deal that would have international creditors provide 10 billion euros ($12.9 billion) to shore up the island nation’s finances.
Under the bailout, Cyprus would also sell government assets, raise corporate tax rates and impose a tax on interest earned in Cypriot banks.
Japan’s Nikkei Stock Average fell 1.8%, South Korea’s Kospi lost 0.7%, and Australia’s S&P/ASX 200 index fell 1.5%. Among U.S. index futures, the Dow Jones Industrial Average contract traded 116 points, or 0.8%, lower at 14,317. Nasdaq futures fell almost 29 points, or 1%, to 2,761.75, while those for the S&P 500 lost 16.6 points, or 1.1%, to 1,537.
Light sweet crude futures for delivery in April tumbled below $93 down more than 1% in the morning electronic trades on the New York Mercantile Exchange Monday. On Friday, it settled up 0.6% at $93.58 a barrel by close of trade.
On the week, New York-traded oil futures tacked on 1.85%, the second consecutive weekly gain. New York-traded crude oil futures rose to a three-week high on Friday, as upbeat U.S. economic data added to the view that the nation’s recovery was gaining momentum, lifting hopes for higher oil demand.
In the U.S., data on Friday showed that industrial production rose by 0.7% in February, beating expectations for a 0.4% increase. The data came after the Federal Reserve Bank of New York said that its index of manufacturing activity declined less-than-expected to 9.2 in March from a reading of 10.0 the previous month.
The mostly upbeat data overshadowed disappointing U.S. consumer confidence data. The University of Michigan’s consumer sentiment index dropped to 71.8 in March, the lowest level since December 2011, from a final reading of 77.6 in February.
MCX March crude futures may open today’s session near or below Rs 5000 with support around Rs 4970 -40 levels.
In the week ahead investors will be focusing on Wednesday’s Federal Reserve policy statement, amid speculation over an earlier-than-expected end to the bank’s asset purchase program.
Fed Chairman Ben Bernanke is to give a press conference after the release of the policy statement.
Source by Commodity Insights