IV:Crude oil futures edge lower on U.S. debt concerns
Investing.com - Crude oil futures inched lower during European morning hours on Tuesday, as fresh concerns over the U.S. debt ceiling weighed on appetite for growth-linked assets.
On the New York Mercantile Exchange, light sweet crude futures for delivery in February traded at USD94.04 a barrel during European morning trade, down 0.15% on the day.
New York-traded oil prices fell by as much as 0.5% earlier in the day to hit a session low of USD93.68 a barrel. Oil futures touched USD94.67 a barrel on January 10, the strongest level since September 19.
Oil prices came under pressure as investors remained cautious ahead of negotiations on raising the U.S. debt ceiling still to come in February.
On Monday, President Barack Obama warned Congress that it must raise the debt ceiling or risk a "self-inflicted wound on the economy."
Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner also urged policymakers to act swiftly in order to prevent a potential debt default.
Losses were limited as the U.S. dollar came under pressure after Fed Chief Bernanke indicated that the central bank intended to continue its quantitative easing program.
In a speech on the economy and monetary policy on Monday, Fed Chief Ben Bernanke said that he was still unsatisfied with the economy’s progress, despite some recent signs of improvement.
Bernanke made no mention of winding the program down, clearing some confusion caused by the most recent Fed meeting minutes.
Oil traders looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 2 million barrels.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Market players were also looking ahead to key Chinese economic data later in the week. The Asian nation is slated to release data on fourth quarter gross domestic product on Friday, along with reports on industrial production and retail sales.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for February delivery eased down 0.1% to trade at USD111.76 a barrel, with the spread between the Brent and crude contracts standing at USD17.77 a barrel.
