Crude Dips as Stock Markets Swoon Amid Ballooning Shale Output
- S&P 500 Index drops most in more than a month; Dow also falls
- Oil market structure known as contango signals price weakness
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Crude closed lower for the first time in four sessions as equities declined around the world against the backdrop of surging oil-production growth from U.S. shale drillers.
Futures fell 0.4 percent in New York on Monday. Investors dumped stocks as risky holdings fell out of favor across the globe. The anxiety rippled through a crude market already unsettled by an increase in drilling activity by American explorers as well as inventories in U.S. tanks and terminals that have expanded in six of the past seven weeks.