American shares have been facing the second day of losses on Wednesday, because traders are taking a cue from dropping oil prices and dumping risky assents, including equities.
Futures for the Dow Jones Industrial Average went down to 16,289, a 105-point loss, the S&P 500 index sagged 11.85 point, demonstrating a 0.6% decline. As for futures for the Nasdaq 100 index, they traded at 4,128, a 0.8% slump.
The declines occurred because oil futures took another beating, thus dragging down American oil companies in premarket trader. Meanwhile, Brent and crude both showed 2% losses, when Saudi Arabia dared to ruin traders’ hopes for an upcoming production cut in order to cope with oversupply in the international oil markets.
Apart from that, Iran’s oil ministers hurt market sentiment in the oil sector, by telling on Tuesday that a decision to freeze oil output at January levels is nothing, but a joke. On Wednesday, Iraq’s governor to OPEC joined the conversation, pointing out that oil producing countries inside and outside the organization need to act promptly together in order to rebalance the oil market.
Shares of Transocean Ltd fell 4.9% ahead of Wednesday’s bell. Marathon Oil Corp lacked 1.6%, Apache Corp went down 1%, while Exxon Mobil Corp lost 0.9%.