BS: Oil Falls for Second Day on Decline in Equities
Oil fell for a second day as equities declined on weaker earnings reports and the dollar strengthened against the euro.
Prices declined as much as 1.4 percent and the Standard & Poor’s 500 Index (SPX) dropped for a second day after Microsoft Corp. and General Electric Co. posted sales that missed estimates. The euro weakened and the dollar gained on concern that the European debt crisis is worsening. Oil rose earlier as TransCanada Corp. (TRP) shut the Keystone pipeline, disrupting crude flows to the U.S.
“The outside broader market is running the show,” said Rich Ilczyszyn, chief market strategist and founder of Iitrader.com in Chicago. “The dollar is up and we have stocks falling.”
Crude for November delivery dropped $1.19, or 1.3 percent, to $90.91 a barrel at 11:58 a.m. on the New York Mercantile Exchange. Earlier, prices touched $93.05, the highest level since Oct. 10. Futures have slipped 1 percent this week and are down 8 percent this year.
Brent for December settlement decreased $1.28, or 1.1 percent, to $111.14 a barrel on the London-based ICE Futures Europe exchange.
The S&P 500 fell as much as 1.2 percent. The euro retreated 0.4 percent after Spanish Prime Minister Mariano Rajoy said his nation doesn’t feel that it’s under any pressure to ask for a bailout, fueling concern the debt crisis will be prolonged.
A weaker euro and stronger dollar reduce oil’s appeal as an investment alternative.
To contact the reporters on this story: Moming Zhou in New York at mzhou29@bloomberg.net
To contact the editor responsible for this story: Dan Stets in New York at dstets@bloomberg.net.
