U.S. crude oil fell over 3 percent to below $70 a barrel on Friday as U.S. equities struggled for traction and raised fears about the economy and a recovery in energy demand.

U.S. crude for October delivery fell $2.20 to $69.74 by 1:24 p.m. EDT (1724 GMT) after rising to $72.90 in choppy trading. London Brent crude fell $2.10 to $67.76 a barrel.

“Crude put in a high for the week, but there was no follow-through and the dollar and S&P turned around and that helped pull crude back,” said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.

U.S. stocks were hampered by profit taking after five days of gains and the longest winning streak since November which helped boost crude prices earlier in the week.

Analysts and traders say that current oil prices reflect attitudes in the market rather than fundamentals.

Data released Thursday by the U.S. government showed petroleum product inventories, including heating oil

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Adele Ferguson | October 18, 2008 Article from:  The Australian

IN 2002, legendary investor Warren Buffett warned that derivatives were time bombs and “financial weapons of mass destruction” that could harm not only their buyers and sellers, but the whole economic system.

Instead of heeding this oracle’s warnings, financial institutions rejoiced in these ticking bombs, which have now blown up, leading to estimates that the global banking system will lose up to $1.4 trillion before the crisis is over.

The world financial system is leveraged beyond comprehension. It is estimated that between $US500 trillion ($732 trillion) and $US700 trillion worth of derivatives are outstanding.

Compare this with the total economic activity (GDP) of the world, which is about $US50 trillion, and even a 5 per cent drop in the value of the derivatives is beyond the rescue capability of the world’s central banks, according to financial author Bert Dohmen in his Prelude to Meltdown.

These

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Adele Ferguson | October 18, 2008 Article from:  The Australian

IN 2002, legendary investor Warren Buffett warned that derivatives were time bombs and “financial weapons of mass destruction” that could harm not only their buyers and sellers, but the whole economic system.

Instead of heeding this oracle’s warnings, financial institutions rejoiced in these ticking bombs, which have now blown up, leading to estimates that the global banking system will lose up to $1.4 trillion before the crisis is over.

The world financial system is leveraged beyond comprehension. It is estimated that between $US500 trillion ($732 trillion) and $US700 trillion worth of derivatives are outstanding.

Compare this with the total economic activity (GDP) of the world, which is about $US50 trillion, and even a 5 per cent drop in the value of the derivatives is beyond the rescue capability of the world’s central banks, according to financial author Bert Dohmen in his Prelude to Meltdown.

These

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NEW YORK - The Dow sank into a bear market on Wednesday as US stocks fell on growing concerns about the toll that record oil prices are taking on the economy and corporate profits. The Dow Jones industrial average tumbled 166.75 points, or 1.46 per cent, to 11,215.51. The Standard & Poor’s 500 Index lost 23.39 points, or 1.82 per cent, to close at 1,261.52, while the Nasdaq Composite Index slid 53.51 points, or 2.32 per cent, to 2,251.46. LONDON - UK stocks shed 1 per cent, extending the previous session’s sharp losses as miners fell on weaker coal prices and Marks & Spencer slumped after a profit warning, though drugmakers rose. The FTSE 100 closed at 5,426.3 points, down 53.6 or 0.98 per cent. FRANKFURT - The DAX index ended at 6,305.42 points, down 10.52 or 0.17 per cent. PARIS - The CAC-40 index closed at 4,296.48 points, down 44.73 or 1.03 per cent. TOKYO ...

Big miners drag down share market THE Australian share market was weaker at noon as losses in the resources sector continued to weigh, although banking stocks recovered. At 12 noon AEST, the benchmark S&P/ASX200 index was down 26.5 points to 5114.4 while the broader All Ordinaries shed 30.6 points to 5230.5. The September share price index futures contract was 20 points lower at 5118 on a volume of 20,255 contracts. During the morning, the S&P/ASX200 index had reached a low of 5060.6, close to its 2008 trough of 5039.60 reached on March 17. Macquarie Equities adviser Helen Spencer said banking stocks had recovered from their morning lows as investors took heart from increased confidence that the central bank was unlikely to raise interest rates again this year. “While the market pulling is down a bit because of resources, the financials have had a great result,” Ms Spencer said. “Talk about holding interest rates steady would also be ...