Oil Prices Retreat as US enjoys Memorial Day Holiday

The US S&P 500 lost 0.2% on Friday night, led down by energy stocks as the oil price fell 4% after Saudi Arabia indicated that OPEC and Russian oil supply would likely be increased. The soft global lead saw ASX 200 futures fall 30 points or 0.5% pointing to a fall in the ASX today, with most of the damage expected to be in the energy sector.

The US market is closed tonight and tomorrow night for the Memorial Day holiday, meaning the Australian market will trade blindly for the next couple of sessions without any real read on sentiment. The news from Saudi Arabia, as well as the ongoing uncertainty regarding North Korea and the potential for the summit to be reinstated for 12 June, means markets could be shaky until the US market reopens.

Elsewhere, Comex gold rose last week thanks to the North Korea situation although that rise may be given back if relations stabilise as now looks to be the case. Onto iron ore, despite gains in the Chinese steel and futures markets, the iron ore price dropped $US2.44 a tonne, or 3.6%, to $US63.94 on Friday from the previous day.

Complex product warning

This article contains information about foreign exchange contracts, which are considered complex financial products. Please click here to read ASIC's foreign exchange trading article before considering an investment in foreign exchange contracts. 

This article contains information about CFDs, which are considered complex financial products. Please click here to read ASIC's "Thinking of trading contracts for difference?" document before considering an investment in CFDs.
comments powered by Disqus

DISCLAIMER: Rivkin aims to provide clear and simple information to those visiting our website. If any part of this disclaimer does not make sense, please phone Rivkin and ask to speak with a member of our Dealing and Relationship Management Team. Rivkin provides general advice and dealing services on securities, derivatives and superannuation (SMSF). Rivkin also provide SMSF administration and accounting services. Rivkin does not provide advice that takes into account your, or anybody else's, investment objectives, financial situation or needs. We strongly suggest that you consult an independent, licenced financial advisor before acting upon any information contained on this website. Investing in and trading securities (such as shares listed on the ASX) and/or derivatives (such as Contracts for Difference or 'CFDs') carry financial risks. CFDs carry with them various additional risks that differ from more simple securities such as fully-paid company shares. Some of these risks include not owning the underlying instrument from which a price is being derived, settling trades 'over the counter' with a financial institution rather than on a stock exchange, and using leverage to gain access to trades that may have a higher face value than your initial deposit. This risk of leverage means that it is possible to lose more than your initial investment. Our aim is to create more life choices for our clients, which means improving the wealth of clients throughout many market cycles by nurturing a relationship spanning many years. If you are not comfortable with your understanding of the risks involved before using a Rivkin product and service, please contact our office to seek further information or a Product Disclosure Statement, or make an appointment to sit with one of our friendly financial experts. It is in our interest for your Rivkin experience to be a rewarding and comfortable one. Rivkin is a trading name of Rivkin Securities ABN 87123290602, which holds Australian Financial Services Licence No. 332 802.