Oil prices shifted to red as they have declined yesterday along with the rest of the financial markets including the American and European stock markets. The lower than expected quarterly growth of the China’s GDP may have contributed to these falls along with the ongoing speculation regarding the Euro-Area debt crisis. Currently crude oil prices are traded down. Today, U.S. Producer Price Index will be published; the Chairman of the Fed will give a speech.
On Monday, October 17th oil price (WTI) slightly fell by 0.48% to $86.38/b; Brent sharply fell 3.31% to $111.68/b; during October WTI rose by 5.51% and Brent by 5.94%.
The Euro/USD declined on Monday by 1.04%. Furthermore, the USD also appreciated against the AUD and GBP. If the USD will appreciate against the risk currencies as it did yesterday, this may also affect oil prices to decrease.
China’s GDP Growth Rate Slipped in Q3 2011 to 9.1%
The GDP of China increased in the third quarter by 9.1% in annual terms. This is a decrease in the growth rate from the previous quarter as the GDP grew by 9.7% and 9.5% in the first and second quarters (in annul terms), respectively. This news may have been among the factors that contributed to yesterday’s falls in the commodities markets.
Here is a reminder of the top events and reports that are planed for today (all times GMT):
13:30 – U.S. Producer Price Index
14:00 – U.S. TIC Long Term Purchases
18:15 – Bernanke Speaks
For further reading:
Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.