Crude-oil futures fell in Asian trading Tuesday, with some traders taking profits from Monday's gains as cautious sentiment prevailed ahead of U.S. employment data due for release later in the week.
Friday's U.S. nonfarm payrolls data for May are the focus for crude-oil investors this week, as the figures will likely give clues on whether or not the Federal Reserve will maintain its stimulus measures. A disappointing reading could stoke hopes that the central bank will continue buying bonds, which would be supportive for oil prices.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at $93.11 a barrel at 0625 GMT, down $0.34 in the Globex electronic session. July Brent crude on London's ICE Futures exchange fell $0.20 to $101.86 a barrel.
Prices came under pressure as traders locked in profits from Monday's gains, which came as the U.S. dollar softened following weak manufacturing data.
Over the next few days, crude oil will continue tracking movements in the greenback ahead of the payrolls report, a Singapore-based trader said.
Brent will continue to see aggressive dip-buying on breaks below $100 a barrel, but may also struggle to sustain upside traction much higher than that key psychological level, he added.
On the fundamental side, investors will be watching Wednesday's Energy Information Administration stocks data carefully for signs that oversupply is growing, Jonathan Barratt, chief economist of Barratt's Bulletin, said in a report.
Last week the data showed stockpiles had jumped to their highest level in 82 years.
"Keep an eye on production in the U.S.," Mr. Barratt said. "If this continues to pick up, oil may come under pressure."
The spread between Brent and U.S. benchmark West Texas Intermediate was at $8.75 a barrel compared with $8.71 a barrel Monday.
Nymex reformulated gasoline blendstock for July--the benchmark gasoline contract--rose 59 points to $2.7910 a gallon, while July heating oil traded 42 points higher at $2.8376.
ICE gasoil for June changed hands at $855.25 a metric ton, up $1.00 from Monday's settlement.
