Possibility Productions

August 08, 2011, 4:00 PM EDT by Margot Habiby

Aug. 8 (Bloomberg)–oil fell to the lowest level in more than eight months, investors fled raw materials for assets such as Treasury bills and gold, after the standard & Poors the creditworthiness of downgraded U.S. for the first time.

Futures fell by 6.4 per cent on the first trading day after the ratings cut service the U.S. to a level to AA + late on Aug. 5 and held the prospect of ‘negative’. A record high on the COMEX in New York City fell two year Treasury yields touched a record low and gold. “The MSCI all country world index of stocks slipped about 5.1 percent.”"There are flight away from any kind of risk-weighted assets at the moment”, said Tom Bentz, a broker with BNP Paribas commodity futures Inc. in New York. “It’s hard to say where the soil is.”Oil for September delivery fell $81.31 $5,57 on the New York Mercantile Exchange, the lowest settlement since November 23. It was the largest a-day decline as futures fell 8.6% on 5 May. Crude oil has fallen 15 percent in August and 11 percent in 2011.New York futures 29 percent since reaching a two year high of $114.83 in intraday trading on May 2 fell have.

Implied volatility for on the-money options in September, a measure of expected volatility in the futures and options prices, gauge was $5.63 or 5.2 percent to $103.74 per barrel 68.7 percent at 3 P.m. in New York, up 40.9% Aug. of 5. Brent crude for September settlement on London’s ICE Futures Europe Exchange fell. The European benchmark contract was with a $22.43-premium to US futures, in the vicinity of $22,67 spread record which based on Aug., 2.U.S. DowngradeS & P, it said the U.S. credit rating downgraded, because the agreement of President Barack Obama and Congressional Republicans, not enough to stabilize the Government “in the medium term debt dynamics.”

“The standard & poor’s 500 index dropped 4.4 percent to 1,147.07 and the Dow Jones industrial average fell 3.5 percent to 11,047.42 at 3:21 pm in New York City.”"This is a blow to the market psyche, and after front, is trust”, said John Kilduff, partner at again Capital LLC, a New York hedge fund that focuses on energy. “The pressure will be on prices, until we see some characters, are to improve things.”Fibonacci AnalysisOil settled under technical support at $82.87, its low from last week, and $83.85, 61.8% retracement of the rally from 2010 lows in a Fibonacci study. Tom Fitzpatrick, technical analyst at Citi FX, a part of the Citigroup capital markets in New York, said the head in a note to clients today, raw would send the injury of level $76.17, to test a price that corresponds to the diagram of the Fibonacci retracement level with 76.4%.The Group of seven Nations said they serve to stabilize the financial markets, which cut, intensified review risks to the global economy after the United States as a slump in Italian and Spanish debt.

The European Central Bank said late yesterday that it “actively implement,” their bond-buying program, signaling it is ready to start buying Italian and Spanish securities the sovereign debt crisis to deal with. “U.S. downgrade urges lower stocks and oil, and we could see another crisis, until the Government Announces measures to increase liquidity, such as a new round of quantitative easing,” said Eugen Weinberg, analyst at Commerzbank AG. “The European Central Bank, the purchase of Italian and Spanish bonds is confidence in markets, increase helps to restore them.”$130 managed a BarrelGoldman Sachs Group Inc., its 2012 keep forecast for Brent crude oil to average $130 per barrel and recommended by investors on December 2012 “long” position of commercial contracts, New York analyst, which David Greely said today, were in an E mail.Die standard & poor’s GSCI total return index of 24 drop up to 4 percent to its lowest level since Jan. 26 as an energy and agricultural markets fell.Gold Futures for December delivery touched a record $1,723.40.

You settled up $61.40, or 3.7 percent, at $1,713.20 on the Comex.Yields on 10-year Notes 2:33 pm in New York fell 22 bps or 0.21 percentage point to 2.34%, according to Bloomberg bond trader Preise.Hedge Fund cut bullish bets on crude oil by most in more than six months on the growing concern that the faltering economic recovery energy requirements is SAP.The funds and other large speculators cut bets that prices rise by 16 percent in the week 2 ended Aug., the most since Jan. 25, according to the commodity futures trading Commission weekly report commitments of traders. Crude oil fell by 5.8 per cent on the New York Mercantile Exchange in the period under review through the data. oil volume in electronic trading on the NYMEX was 805,219 contracts as 11 pm in New York. Volume totalled 5, 40 percent above the average of the last three months 964,423 contracts Aug. Open interest was 1.55 million contracts.

-With the help of Ayesha Daya in Dubai and Moming Zhou in New York City. Publisher: Richard Stubbe, Charlotte Porter

The reporter on this story contact: Margot Habiby in Dallas on mhabiby@bloomberg.net

The editor responsible for this story contact: Dan always at dstets@bloomberg.net

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