Oil

Oil: Crude tanks to four-year low after OPEC decides not to intervene OPEC’s decision yesterday not to intervene in the oil market, and cut production to ease the supply glut, led crude oil to post its biggest decline in three years. Both WTI and Brent crude slumped to US$68.69/bbl (-6.8%) and US$72.58/bbl(-6.6%), respectively, to hit new four-year lows. Standard Chartered slashed its Brent forecast by US$16 to US$85/bbl for 2015. While the US markets were closed for the Thanksgiving holiday, the global oil majors listed in other exchanges were sold off heavily. In Brazil, Petrobras shares declined 4.7%; in Europe, falls of between 2.8% and 4.1% were recorded in Gazprom, Shell and Total. Similarly, expect the Singapore-listed O&M companies to face selling pressure today. Notably, the large cap plays like Keppel Corp, Sembcorp Marine, and Ezion have stronger correlations to oil prices, given their institutional investor following, and may see volatility in their share prices spike today.