Crude
futures settled nearly flat Tuesday, taking a break after a decline of
three weekly sessions with a round of U.S. supply data barrel, but concerns about demand kept pressure on prices.
May crude oil (NMN: CLK3) added a penny to settle at $ 88.72 a barrel on the New York Mercantile Exchange, after hitting intraday lows below $ 87.
Prices had posted a loss of more than 6% in the last three trading sessions.Concern about rising U.S. crude inventories, poor domestic demand for refined products and lower IMF forecast global economic growth are among the pressures of oil prices, said Alan Herbst, director of Utilis Advisory Group.
Nymex crude "could easily return among low sessions MUST weekly inventory reports ... show builds additional actions," he said.London, June Brent crude traded (IET: UK: LCOM3) on Tuesday ended below the key $ 100 per barrel level, up 72 cents, or 0.7%, to $ 99.91, after a fall of 2 , 3% in the previous session.
Based on the most active contract, Brent crude was not installed under $ 100 since July, according to FactSet.A pipeline in Texas. Oil slips to fourth month low Tuesday."Brent Oil prices below $ 100 Define an overview of how global markets are thinking fuels and total global demand today, not only, but in the next two years and more," said Richard Hastings, macro strategist at Global Hunter Securities.
"The key concepts are downturns in world merchandise trade" - with a sample volume of only a 2% increase in 2012, Hastings said, citing data from the World Trade Organization.
The market experienced a "disturbing number growth in China, and the shot in the long-term projections of fuel demand, and you have informed caution and reflection in action oil futures," he said.Julian Jessop, head of commodities research at Capital Economics, said in a note Tuesday that $ 100 can become the ceiling for Brent oil in the coming years.
Brent said also is likely to end this year below that level.Nymex oil on Monday fell $ 2.58, or 2.8%, to 88.71 dollars a barrel, the lowest settlement for a most-active contract since late December, according to FactSet.
Oil and other commodities sank Monday after quarterly economic growth and monthly industrial production figures of China was weaker than expected.
The figures raised concerns that demand for raw materials, including oil, are softened.Underscoring those concerns, the International Energy Agency and the Organization of Petroleum Exporting Countries last week reduced its global oil demand growth estimates for the year slightly.Economic data on Monday showed U.S. inflation consumer fell 0.2% in March, led in part by lower energy costs.
Analysts expected a drop of 0.1%.Industrial production grew slightly more than expected, to a seasonally adjusted 0.4% in March.And March housing construction rose to its highest level in nearly five years."The housing starts data were very optimistic, but it's big enough to affect world oil history? Not really," Hastings said.
Supply data
The American Petroleum Institute will release its weekly U.S. oil inventory report Tuesday afternoon, to be followed on Wednesday by data from the Energy Information Administration of the U.S..Analysts polled by Platts expect U.S. commercial crude supplies increased 1.25 million barrels in the week ended April 12.
They are also looking for a decline of 1.1 million barrels in gasoline stocks and a fall of 850,000 barrels in distillate inventories."Inventories of crude will continue to rise in the U.S., and if further increases in gasoline stocks are seen, the complex [have] little support", report analysts said Kilduff.
Last week, the API said crude supplies rose 5.1 million barrels, well above the consensus estimate Platts a 1.4 million barrel increase, while the EIA reported that stocks rose 300,000 barrels.Before the latest updates of supplies, May futures gasoline (NMN: RBK3) rose more than 2 cents, or 0.9%, to $ 2.78 a gallon, after Monday's loss of 1.6%, while heating oil May (NMN: HOK3) fell 2 cents, or 0.8%, to $ 2.81 a gallon.
The prices in the previous session was reduced by 1.5%.Natural gas for May delivery (NMN: NGK13) nailed by 2 cents, or 0.6%, to close at $ 4.16 per million British thermal units. Prices fell 2% on Monday, nearly erasing last week's gains of 2.4%.CME Group Inc. (NASDAQ: CME), the parent company of the metals and energy exchanges in the U.S., said Monday it is raising collateral requirements for trading in natural gas futures by 5, 6%, effective at the close of business on Tuesday.
Increases margins tend to be implemented in times of market turmoil. Margin increases were also implemented by the reference gold, silver and other precious metals futures contracts.Goldman Sachs recently recommended going short on gold, but on Tuesday, also said natural gas was long.
May crude oil (NMN: CLK3) added a penny to settle at $ 88.72 a barrel on the New York Mercantile Exchange, after hitting intraday lows below $ 87.
Prices had posted a loss of more than 6% in the last three trading sessions.Concern about rising U.S. crude inventories, poor domestic demand for refined products and lower IMF forecast global economic growth are among the pressures of oil prices, said Alan Herbst, director of Utilis Advisory Group.
Nymex crude "could easily return among low sessions MUST weekly inventory reports ... show builds additional actions," he said.London, June Brent crude traded (IET: UK: LCOM3) on Tuesday ended below the key $ 100 per barrel level, up 72 cents, or 0.7%, to $ 99.91, after a fall of 2 , 3% in the previous session.
Based on the most active contract, Brent crude was not installed under $ 100 since July, according to FactSet.A pipeline in Texas. Oil slips to fourth month low Tuesday."Brent Oil prices below $ 100 Define an overview of how global markets are thinking fuels and total global demand today, not only, but in the next two years and more," said Richard Hastings, macro strategist at Global Hunter Securities.
"The key concepts are downturns in world merchandise trade" - with a sample volume of only a 2% increase in 2012, Hastings said, citing data from the World Trade Organization.
The market experienced a "disturbing number growth in China, and the shot in the long-term projections of fuel demand, and you have informed caution and reflection in action oil futures," he said.Julian Jessop, head of commodities research at Capital Economics, said in a note Tuesday that $ 100 can become the ceiling for Brent oil in the coming years.
Brent said also is likely to end this year below that level.Nymex oil on Monday fell $ 2.58, or 2.8%, to 88.71 dollars a barrel, the lowest settlement for a most-active contract since late December, according to FactSet.
Oil and other commodities sank Monday after quarterly economic growth and monthly industrial production figures of China was weaker than expected.
The figures raised concerns that demand for raw materials, including oil, are softened.Underscoring those concerns, the International Energy Agency and the Organization of Petroleum Exporting Countries last week reduced its global oil demand growth estimates for the year slightly.Economic data on Monday showed U.S. inflation consumer fell 0.2% in March, led in part by lower energy costs.
Analysts expected a drop of 0.1%.Industrial production grew slightly more than expected, to a seasonally adjusted 0.4% in March.And March housing construction rose to its highest level in nearly five years."The housing starts data were very optimistic, but it's big enough to affect world oil history? Not really," Hastings said.
Supply data
The American Petroleum Institute will release its weekly U.S. oil inventory report Tuesday afternoon, to be followed on Wednesday by data from the Energy Information Administration of the U.S..Analysts polled by Platts expect U.S. commercial crude supplies increased 1.25 million barrels in the week ended April 12.
They are also looking for a decline of 1.1 million barrels in gasoline stocks and a fall of 850,000 barrels in distillate inventories."Inventories of crude will continue to rise in the U.S., and if further increases in gasoline stocks are seen, the complex [have] little support", report analysts said Kilduff.
Last week, the API said crude supplies rose 5.1 million barrels, well above the consensus estimate Platts a 1.4 million barrel increase, while the EIA reported that stocks rose 300,000 barrels.Before the latest updates of supplies, May futures gasoline (NMN: RBK3) rose more than 2 cents, or 0.9%, to $ 2.78 a gallon, after Monday's loss of 1.6%, while heating oil May (NMN: HOK3) fell 2 cents, or 0.8%, to $ 2.81 a gallon.
The prices in the previous session was reduced by 1.5%.Natural gas for May delivery (NMN: NGK13) nailed by 2 cents, or 0.6%, to close at $ 4.16 per million British thermal units. Prices fell 2% on Monday, nearly erasing last week's gains of 2.4%.CME Group Inc. (NASDAQ: CME), the parent company of the metals and energy exchanges in the U.S., said Monday it is raising collateral requirements for trading in natural gas futures by 5, 6%, effective at the close of business on Tuesday.
Increases margins tend to be implemented in times of market turmoil. Margin increases were also implemented by the reference gold, silver and other precious metals futures contracts.Goldman Sachs recently recommended going short on gold, but on Tuesday, also said natural gas was long.
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