Oil closed up on Wednesday for the first time in five days as traders took stock of the market's rout after crude prices lost nearly 10 percent over two days and benchmark Brent fell to below $50 a barrel.
A decline in Brent crude futures to a near 5-1/2-year low of $51 a barrel extended the oil market rout that began in mid-2014. The latest fall intensified concerns about how the dramatic price drop, due to sluggish global growth and a supply glut, will hurt earnings of oil companies and exacerbate disinflationary pressure worldwide.
"I think the likelihood of seeing $46 to $45 is quite likely," said Phillip Streible, senior market strategist at RJO Futures in Chicago. "People, I think, are further understanding that the U.S. is becoming a powerhouse in creating crude oil and that's not going to change anytime soon."
Declining issues outnumbered advancing ones on the NYSE by 2,076 to 1,011, for a 2.05-to-1 ratio; on the Nasdaq, 2,117 issues fell and 657 advanced for a 3.22-to-1 ratio favoring decliners. The S&P 500 posted 14 new 52-week highs and 15 new lows; the Nasdaq Composite recorded 38 new highs and 73 new lows.
