$25 for a barrel of WTI does not appear so fantastic anymore. Investors speculations multiplied by a continuously increasing market surplus make Oil hit new record lows. Bearish sentiments dominated on Wednesday with WTI breaking the $27 level reaching 26.55 low and Brent touching the $27.10 level. EIA report confirmed the previous fears, showing that US Crude inventories increased by 0.2M barrels, despite a wave of bankruptcies among Oil producers looming large in the U.S.
The collapse in Oil market also impacted the world stocks, sending S&P500 down by 1.17%, Dow Jones down by 1.56%.
Russian currency responded with a steep crash, USD/RUB crossing the 80 level. Russian panic extended today, sending USD/RUB to the historical high at the 85.75 level, making Russian currency the worst performer in developing countries. A further drop in Oil prices may result in further depreciation of Ruble, pulling USD/RUB over the 90 level, with possible interventions from Russian Central Bank.
Asian indices suffer from a sharp sell-off as investors quit risky assets. Nikkei225 fell by 2.43%, Hang Seng dropped by 1.82%. Investors’ shift to the safe havens has made Japanese Yen and Swiss Franc best performers against other major peers – USD/JPY -0.01% to 116.93, USD/CHF +0.02% to 1.0045. Chinese government has tried to keep negative concerns over economic growth away from the market by making huge cash injections. However, this plan has failed and ShComp was trading in the red zonetoday closing up with a 3.23% loss.Publication source