Wall St. Sinks as Oil Prices Weigh on Banking and Energy- New York Times

United States markets fell on Wednesday, weighed down by banks, which remained under pressure because of economic unease and worries about the amount of energy loans on their balance sheets.

Saudi Arabia’s oil minister, Ali al-Naimi, told a meeting of energy leaders in Houston on Monday that output cuts aimed at lifting slumping crude prices would not work. He said the market should instead let some operators go out of business. Crude oil prices tumbled more than 4 percent on Tuesday and continued to fall on Wednesday. The long-term drop in oil prices, which are hovering around $30 a barrel after falling from over $100 in mid-2014, has decimated profits at energy companies. It is also starting to hurt income at big American banks as higher-cost producers struggle to repay loans taken out during the boom.

Crude oil turned higher around midday after the United States government reported that the nation’s crude oil storage hit another record high last week, but the amount of storage was less than what some traders had expected. American crude rose 26 cents to $32.13 a barrel in New York. Brent crude, which is used to price oils internationally, gained $1.14, to $34.41 a barrel.
Source: http://tipats.com/

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