SINGAPORE (Dow Jones)--Crude-oil futures fell in Asia Tuesday as market participants booked profits after recent gains and waited for fresh cues from the latest U.S. data--weekly crude-oil inventory and February housing starts--due later in the day.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $107.47 a barrel at 0615 GMT, down $0.62 in the Globex electronic session. The contract, which expires Tuesday, settled at $108.09 a barrel Monday, its highest level since March 1. May Brent crude on London's ICE Futures exchange fell $0.68 to $125.03 a barrel.
International Monetary Fund Managing Director Christine Lagarde Sunday said that she sees hopeful signs that the world economy is stabilizing. But she didn't dismiss downside risks, including a slowdown in emerging market economies, and ultimately sent mixed signals to the market, a Tokyo-based trader said.
Crude prices will likely remain steady with a downward bias in coming sessions, with continued concerns over Europe offsetting a brighter outlook for the U.S. economy, Fat Prophets resource analyst David Lennox said.
Saudi Arabia, the world's largest oil exporter, said Monday that it will work alone and in coordination with other producers and consumer countries to ensure adequate global crude-oil supplies, market stability and fair prices.
This is somewhat bearish for oil prices because it eased fears of a supply shock due to rising tensions between Iran and the West, and Western sanctions against Iranian crude exports, Lennox said.
Crude oil's gains in recent days are likely just a test of recent highs that will be followed by slides of $3-$4/bbl for both Nymex and Brent benchmark contracts, Jim Ritterbusch at Ritterbusch & Associates said in a note.
The American Petroleum Institute is scheduled to release its survey of crude-oil inventories Tuesday, while the closely watched survey from the U.S. Energy Information Administration is due Wednesday.
"We're waiting for the U.S. inventory data now," a Singapore-based trader said, noting that any deviation from market expectations will affect prices.
U.S. crude-oil inventories rose by 2.4 million barrels in the week ended March 16, according to preliminary estimates from four analysts surveyed by Dow Jones Newswires.
Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--fell 93 points to $3.3585 a gallon, while April heating oil traded at $3.2472, 141 points lower.
ICE gasoil for April changed hands at $1,037.50 a metric ton, down $6.00 from Monday's settlement.
-By Surabhi Sahu, Dow Jones Newswires; +65 6415 4086; surabhi.sahu@dowjones.com
