Crude-oil futures eased in Asian trading hours on Monday as markets absorbed the full impact of last week's U.S. labor market report and as negotiations to disable Iran's nuclear program progressed.
On the New York Mercantile Exchange light, sweet crude futures for delivery in February traded at $92.27 a barrel at 0641 GMT--down $0.45 in the Globex electronic session. February Brent crude on London's ICE Futures exchange fell $0.18 to $107.07 a barrel.
Friday's disappointing U.S. jobs data weakened the U.S. dollar and boosted crude-oil prices as markets speculated the Federal Reserve won't wind down bond buying as fast as first thought.
The weakness in the U.S. labor market is a result of the cold snap and fundamental strength in the economy will be reasserted soon, ABN Amro said in a note.
"We expect strong economic prospects and gradual Fed tapering," the bank said adding investor sentiment should be supported and risky assets and the dollar are expected do well. Any gains in oil prices were also capped after reports international negotiations with Iran on implementing an interim agreement were gaining traction--potentially paving the way for Iranian oil exports to resume.
Iran will also get a first installment around Feb. 1 of $550 million of $4.2 billion being unblocked under a six-month landmark nuclear deal with the West, a U.S. official said Sunday.
The Organization of the Petroleum Exporting Countries will release its monthly oil-market report on Jan. 16.
OPEC production rose by 20,000 barrels a day to 29.72 million barrels a day in December from a month earlier as increases from Saudi Arabia, Iran and Nigeria offset a drop in Iraqi volumes, oil pricing agency Platts said in a weekend statement. Higher oil supply is bearish for oil.
Money managers slashed bets on higher crude-oil prices to their lowest in more than a month, according to CFTC data for the week ended Jan. 7. Markets will track this week's data for further cues on economic recovery and Fed tapering.
Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--fell 1 point to $2.6690 a gallon while February heating oil traded at $2.9419, 12 points higher.
ICE gasoil for February changed hands at $906.50 a metric ton--up $7.00 from Friday's settlement.
