Aggressive early slides across the stock market have led to a very volatile trading session in financial and commodity markets Monday.
Although the Dow Jones index traded more than 500 points lower in late-day trade Monday, the fact that current price levels are nearly 600 points off of the session lows gives you a glimpse of just how aggressive pressure was early in the day Monday.
Energy futures were quickly caught up in the aggressive market tumble, with RBOB gasoline futures losing 7.39 cents per gallon at settlement in front-month futures, moving to $1.4710 a gallon. Additional late-day pressure is seen in the market following market settlement, which would indicate that traders may be looking for additional pressure once markets open once again.
Front-month crude oil futures settled at $38.24 a barrel, after losing $2.21 per barrel. This led to additional long-term concerns of just how much additional pressure can develop through the market. Currently gasoline futures are trading at the lowest level since January 2015, while charts have to be followed all the way back to early 2009 to see a lower crude oil market move.
The seasonal shifts between the two markets may keep prices moving in slightly different patterns, but without a sense of stability in the stock market, it is going to be very hard to draw buyers into either energy sector.
Rick Kment can be reached at firstname.lastname@example.org
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