(RTTNews) - The price of crude oil was moving lower Tuesday morning amid concerns over demand growth after Saudi Arabia assured enough supplies to stabilize the market and China hiked retail oil prices.
Earlier today, China said that it was raising retail gasoline and diesel prices by between 6 and 7 percent, the biggest increase in nearly 3 years that escalated concerns over demand growth from the commodity hungry nation.
Saudi Arabia, the world's largest oil exporter, said Monday it would ensure adequate global supplies of crude oil to stabilize the market and prices.
Light Sweet Crude Oil (WTI) futures for April delivery, which expires today, eased $0.57 to $107.52 a barrel. Light Sweet Crude Oil (WTI) futures for May delivery, the most actively traded contract, were down $0.62 to $107.94 a barrel.
Yesterday, oil ended higher near its two-week high mostly on a weak dollar and investor optimism of an economic recovery globally.
This morning, the U.S. dollar was leveling off from its weekly low versus the euro and a two-week low against sterling. The buck was steady near its 1-year peak versus the yen and edging up against the Swiss franc.
In economic news, Germany's producer price inflation eased for the fifth month to a 20-month low in February, data from the Federal Statistical Office showed. The producer price index increased 3.2 percent annually in February in line with economists' expectations, slower than the 3.4 percent rise in January.
Elsewhere, U.K. annual inflation slowed further in February to the lowest level since November 2010, data from the Office for National Statistics showed today. Consumer price annual inflation slowed to 3.4 percent in February from 3.6 percent in January. Nevertheless, the inflation figure remained slightly above the 3.3 percent forecast by economists.
Traders will look to the building permits and housing starts data from the Commerce Department, due out at 8.30 a.m ET. Economists expect the housing starts to come in at 700,000 from the last months 699,000.
Today after the market hours, the API will release its U.S. crude oil inventories report for the weekended March 16.
