LP:WTI oil trading back under $80 as stock markets continue sell off
WTI oil prices open Tuesday’s trading session down sharply lower, under $80 a barrel as Asian stock markets continue a sell off following big drops in the US stock market yesterday, sending oil prices tumbling as investors grow increasingly pessimistic about the outlook for the global economy.
Latest WTI Oil Price
US Light crude oil futures for September 2011 delivery was trading at $78.67 a barrel, 07.03 GMT this morning in electronic trading on the NYMEX. The US contract lost as much as 5 percent this morning, before clawing back some ground.
Asian Stock Markets – Free Fall
On Asian markets, the Hang Seng was the biggest looser among Asia’s top stock indices, down 7.2 percent, taking its lead from the sharpest fall in US stocks since the panic that followed the Lehman collapse in 2008.
“It’s a horrible place to be, dark days are upon us. How much further to fall is the question people are asking.” said IG Markets institutional dealer Chris Weston from Melbourne.
Asian stocks had been expected to open lower after Wall Street suffered its steepest one-day drop since late 2008 on Monday, with the Dow Jones Industrial Average falling 5.55 percent, while the broader S&P 500 fell 6.7 percent and the tech-heavy Nasdaq dived 6.9 percent.
Meanwhile gold prices, viewed as a safe haven in financial turmoil, hit a record high $1,754.24 an ounce in Hong Kong morning trade.
