By Nick Godt, MarketWatch
NEW YORK (MarketWatch) — Crude-oil futures slumped Friday, tracking a broad move lower in global equities and commodities, as investors’ concerns mounted that China may tighten lending conditions to tame inflationary pressures.
Crude for December delivery (CLZ10 86.37, -1.44, -1.64%) recently fell $1.22, or 1.4%, to stand at $86.61 a barrel.
On Thursday, December crude ended flat but near two-year highs, with a rising dollar offsetting upbeat Chinese refining data and a surprise decline in U.S. inventories earlier in the week.
However, stocks slumped throughout Asia to close out the trading week, on concerns that China may again tighten lending conditions after reporting rising inflation figures earlier this week.
Moreover, Chinese media reported that Beijing’s setting out new rules that will forbid foreign companies from buying property there and limit foreigners to purchasing just one residential unit for their own use.
Meanwhile, as the meeting of G-20 countries wrapped up in Seoul, it did so “with little to show (not surprisingly),” said Doug Porter, analyst at BMO Capital.
“The G-20 leaders did agree to set ‘indicative guidelines’ for trade imbalances, but left the details to be worked out net year,” Porter wrote in a note. “They also agreed to avoid competitive devaluations and allow some emerging markets to deploy ‘carefully designed’ capital controls.” See more on the Group of 20’s statement issued as the multilateral body wrapped up its meeting in South Korea.
