Crude oil futures posted a sharp triple-digit loss Friday as traders quickly pushed front-month February futures to $29.42 per barrel before they exited the market for the three-day holiday weekend.
This is the first time since Nov. 25 2003 that spot month crude oil futures have closed below $30 per barrel. Just how much additional pressure is still in the market remains uncertain: supplies remain abundant and demand is sluggish.
RBOB gasoline futures posted an aggressive loss nearing the $1 per gallon threshold. The weakness through early 2016 in most markets has created some major market concerns. The stock market has tumbled significantly lower, with the Dow Jones Index falling more than 1,700 points, and under 16,000 points through the first two weeks of January.
There is no turning point expected to be quickly seen in the market either when traders return to the market next Tuesday, following the three-day weekend. This creates concern of even further pressure.
Rick Kment can be reached at firstname.lastname@example.org
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