By Claudia Assis and Steve Gelsi, MarketWatch
SAN FRANCISCO (MarketWatch) — Crude-oil futures traded between small gains and losses Wednesday after a big run-up in the previous session, but held above $102 a barrel.
Crude for February delivery CL2G -0.02% declined 5 cents, or 0.1%, to $102.90 a barrel on the New York Mercantile Exchange.
Pressure came from a higher dollar and some profit taking as oil ended Tuesday 4.2% higher, its best in nearly eight months.
But U.S. equities traded lower on Wednesday, and other industrial commodities also cooled off after big gains in the previous session. Read more on U.S. stocks.
Iran’s reaction to economic sanctions imposed over the weekend and better-than-expected economic data pushed oil prices higher Tuesday and kept a floor under prices in Wednesday’s session, analysts said.
In the latest energy wrinkle, South Korea and Japan are mulling the implications of U.S. moves to toughen the sanctions against Iran, with each facing a potential disruption of oil imports from a country that meets close to 10% of their crude needs. See story on Iran sanctions.
The dollar index DXY +0.74% , which compares the U.S. unit to a basket of six major currencies, traded at 80.129 from 79.591 in late Tuesday North American session. Read more on currencies.
A higher dollar is negative for oil and other commodities as it makes them more expensive to holders of other currencies, diminishing their investment appeal.
Oil was also under stress from a drop for U.S. and European stocks.
In Europe, investors dumped bank shares after a Spanish newspaper, citing unnamed sources, reported Spanish authorities are considering applying for loans from the International Monetary Fund and Europe’s bailout fund. Read more on Europe Markets.
Markets also reacted negatively to news Markit’s composite purchasing managers index for the euro zone released Wednesday rose to a three-month high at 48.3 in December, but showed private-sector activity continued to contract across the 17-nation region.
The reading was above expectations of 47.9. A reading of less than 50 signals a contraction in activity, while a figure of more than 50 signals growth.
Meanwhile, other energy futures traded mostly higher, with February gasoline RB2G +0.48% up 1 cent, or 0.3%, to $2.76 a gallon. Heating oil for the same month’s delivery HO2G +1.28% added 3 cents, or 1%, to $3.07 a gallon.
Claudia Assis is a San Francisco-based reporter for MarketWatch.
Steve Gelsi is a reporter for MarketWatch in New York.
