$DIA, $SPY, $QQQ, $RUTX, $OIL, $USO, $VXX
Wall Street closed lower, Crude Oil prices spiked after attack in Saudi Arabia
The attack knocked about 5.7-M BPD out of production, leading to the biggest 1-day gainer in WTI Crude Oil ($62.88/bbl, +$8.00, +14.6%) since Y 2008. Saudi Arabia expected to restore about 33% of lost production Monday, while normal production could take “weeks not days,” according to sources from Reuters.
Consumers around the world may see temporary rise in price for products ranging from gasoline and diesel to home heating costs and air fares, after this weekend’s attacks caused a spike in global Crude Oil prices. As the cost of transportation rises, that could mean shipments of other goods, such as groceries, could also increase in the coming months.
In the US, drivers could see gasoline prices at the pump start to rise as early as this week and prices could climb as much as 25c this month. The US gasoline and diesel futures contracts on the New York Merc rose more than 12% and 10%, respectively, Monday.
The average price for a gallon of regular gasoline is currently $2.56, according to the American Automotive Association. That is very short of levels typically associated with reduced spending from consumers. In Y 2008, amid a global economic downturn, a surge in Crude Oil prices pushed the average gallon of gasoline to a record $4.11, according to AAA.
Monday, the major US stock market indexes finished at: DJIA -142.70 at 27076.80, NAS Comp -23.17 at 8153.58, S&P 500 -9.43 at 2997.96
Volume: Trade on the NYSE came in at 907-M/shares exchanged.
- NAS Comp +22.9% YTD
- S&P 500 +19.6% YTD
- Russell 2000 +17.5% YTD
- DJIA +16.1% YTD
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Neutral to Bullish with the Key indicators flashing Very Bullish in here.