Following the surge in crude prices in the past three trading sessions, some investors seized the opportunity to book profits, but rising tensions in the Middle East are triggering supply concerns.
Also weighing on prices is China`s crude oil imports for April which were expected to have held near to March levels, which were 2.1% lower than a year earlier. Crude stockpiles are expected to hit a record high in the U.S.
China`s preliminary April trade data is due on Wednesday, while the American Petroleum Institute (API) report will be released later today, and the U.S. Energy Department`s Energy Information Administration (EIA) report is due on Wednesday.
Moreover, Europe`s prolonged debt crisis, the uncertainty over China`s growth and weak global demand are also weighing on the market. “The current fundamentals are very weak, with China slowing down and with U.S. demand not so strong”, said Tetsu Emori.
Crude oil is trading around the $95.45 a barrel level, compared with the opening at $95.81. The highest is at $95.87 and the lowest is at $95.24
Brent is trading around $104.91 a barrel after falling 0.52% or $0.55
In the Middle East, Israel carried out another airstrike on Syria. Israel says the raids were not aimed at interfering in the civil war, but only at stopping Iranian missiles reaching Lebanese Hezbollah militants.
“Rising geopolitical worries have increased the risk premium on oil and the fear is that the Israeli attack is going to lead to a wider involvement of other nations in the Syrian conflict”, said Victor Shum from HIS, Singapore.
After the Australian central bank lowered the benchmark interest rate today a record low at 2.75% to support growth, inventors will be closely watching the German factory orders, the first quarter earnings by Europe`s largest banks and the U.S. consumer credit.
- Natural gas is trading at $3.982 per cubic feet after falling 0.72%
- Gasoline is trading at $2.849 a gallon after falling 0.58%
- Heating oil is trading at $2.9108 a gallon after falling 0.32%