Since the June employment numbers were released last Thursday, oil prices have fallen more than 10%, including a drop to as low at $59.59 per barrel in London markets today. In late June crude oil was trading at more than $73 per barrel. The International Energy Agency said they expect oil consumption to increase in 2010, but predicted that this year consumption would remain weak.
Economic uncertainty is weighing on equities as well, which look to open lower Friday morning ahead of the monthly Trade Balance report and the first monthly look at Consumer Confidence.
“Risk aversion is back from a one-day vacation on concern that global green shoots may be wilting on the vine,” said BMO economist Sal Guatieri.
With equities continuing to fall, Treasuries are rallying. The 10-year yield is now at 3.34%, down 6 basis points overnight, marking a huge gap between the 4% rates seen in mid-June.
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