Crude futures took a beating on Tuesday, the last day of the third quarter, as investors ditched the commodity on concerns that the global market is awash in crude while demand remains soft. Crude hammered lower as quarter ends amid major supply concerns Oil takes a pummeling on global supply glut fears. Investors finished the third quarter abandoning oil positions on concerns that the global oil supply remains very ample and far outstrips demand. Oil has seen some support in the past on perceptions that the U.S. economy may offset softening demand in Europe and Asia, but a disappointing consumer confidence report released earlier exacerbated the selloff. The Conference Board reported earlier that its consumer confidence index fell to 86.0 this month from 93.4 in August, whose figure was revised up from a previously reported 92.4. Analysts expected the index to decline to 92.5 in September, and the number punished oil prices as consumer spending drives about three quarters of the U.S. economy.
GOLD
Gold futures edged lower on Tuesday and threatened to post their first quarterly this year after soft European inflation data sparked demand for the U.S. dollar, which trades inversely with the yellow metal. Gold falls as dollar gains on soft European inflation data. Stronger dollar sends gold prices dropping Eurostat, the statistics arm of the European Union, reported earlier that the euro area's annual inflation rate fell to a five-year low of 0.3% in September from 0.4% in August. Core inflation, which strips out food, energy, alcohol and tobacco costs, came in at 0.7%, down from 0.9% in August. Slumping consumer prices fueled market expectations for the European Central Bank to implement fresh stimulus measures to stave off deflationary threats after the bank unexpectedly cut rates to record lows last month. A separate report showed that the euro zone’s unemployment rate was unchanged at 11.5% in August. Meanwhile in the United States, the Conference Board reported earlier that its consumer confidence index fell to 86.0 this month from 93.4 in August, whose figure was revised up from a previously reported 92.4.
