IV:Crude oil futures lower as U.S. recovery concerns weigh
Investing.com - Crude oil futures were lower for a second day on Tuesday, after Monday’s disappointing U.S. manufacturing data raised concerns over the strength of the U.S. economic recovery.
On the New York Mercantile Exchange, light sweet crude futures for delivery in May traded at USD96.85 a barrel during European morning trade, down 0.25% on the day.
New York-traded oil prices fell by as much as 0.5% earlier in the session to hit a daily low of USD96.62 a barrel.
The Institute of Supply Management said its U.S. manufacturing purchasing managers’ index declined to 51.3 in March, its lowest level since December, from 54.2 in February.
Analysts had expected the PMI to remain unchanged last month.
Market players now looked ahead to the release of 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 2.3 million barrels.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Investors were also eyeing policy meetings by the European Central Bank on Thursday.
Sentiment on the euro remained fragile amid ongoing concerns over the situation in Cyprus and ongoing political uncertainty in Italy.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery dipped 0.2% to trade at USD110.85 a barrel, with the spread between the Brent and crude contracts standing at USD14.00 a barrel.
The spread between the two contracts continued to trade near an eight-month low, due to an improving production outlook in the North Sea and amid growing concerns over the euro zone’s economic outlook.
At the same time, U.S. oil stockpiles at Cushing, Oklahoma, the delivery point for Nymex oil futures, are declining as new pipelines relieve a supply glut there.
