Oil slid below $46 as OPEC members failed to bridge differences on production cuts, while a rally in metals fizzled. US stocks were little changed, with major indexes hovering near all-time highs. According to Bloomberg News, the S&P 500 Index added 0.1 per cent, reversing an earlier loss, as gains in banks and health-care stocks countered losses among commodity shares.
Crude slid as Iraq and Iran raised objections over the distribution of output reductions and Russia said it’s not planning to attend crucial talks with the Organization of Petroleum Exporting Countries on tomorrow.
Copper slumped for the first time in seven days and the Bloomberg Dollar Spot Index was little changed after a two-day loss. The rand plunged after President Jacob Zuma survived a leadership threat.
“The oil price is shaky as well as oil-related companies,” said Herbert Perus, head of equities at Raiffeisen Capital Management in Vienna, which manages 30 billion euros ($32 billion).
“We have a very important OPEC meeting and there’s a flow of expectations in front of this meeting.”
With the market giving just 30 per cent odds to an agreement to end the oil supply glut, according to Goldman Sachs Group Inc., pessimism about the makeor- break talks is helping to damp a commodities rally following Donald Trump’s surprise presidential election. Investors will get further insight on the US economy from a payrolls report on December 2, after data on third-quarter growth Tuesday beat forecasts.
West Texas Intermediate crude slipped 3.8 per cent to $45.29 a barrel as of 10:40 a.m. in New York, after rising 2.2 per cent on Monday. Copper futures dropped 2.3 per cent on the London Metal Exchange, nickel lost 2.9 per cent while zinc declined 4.1 per cent.