NYMEX crude flat in early Asian session as ECB stress tests better than expected

Investing.com - Crude oil prices eased in early Asian trade on Monday on better than expected results from stress test exercises for European banks.

On the New York Mercantile Exchange, West Texas Intermediate crude oil futures for delivery in December traded at $81.20 a barrel, down 0.13%.

Brent oil futures, the global benchmark, fell 0.8% to $86.13 a barrel on ICE Futures Europe on Friday.

Roughly one in five of the euro zone's top lenders failed landmark health checks at the end of last year but most have since repaired their finances, the European Central Bank said on Sunday.

Painting a brighter picture than had been expected, the ECB found the biggest problems in Italy, Cyprus and Greece but concluded that banks' capital holes had since chiefly been plugged, leaving only a modest 10 billion euros ($12.7 billion) to be raised.

Italy faces the biggest challenge with nine of its banks falling short and two still needing to raise funds.

The test, designed to mark a clean start before the ECB takes on supervision of the banks next month, said Banca Monte Dei Paschi Spa (OTC:BMDPY) had the largest capital hole to fill at 2.1 billion euros.

Last week, oil prices dropped on Friday after markets dismissed Thursday's news reports that Saudi Arabia trimmed output in September to support the market.

Oil prices shot up on Thursday on news reports that Saudi Arabia cut crude oil production by about 328,000 barrels in September to a total of 9.36 million barrels, though by Friday, clarifications that supplies were not cut though some barrels went into storage sent futures falling, especially on report overall output actually increased last month.

Meanwhile, reports that a doctor tested positive for the Ebola virus in New York City added to the selloff amid concerns that fears of a broader output could weigh on U.S. recovery and dampen demand for fuel and energy.

Soft U.S. housing data kept prices in negative territory as well.

The Census Bureau reported earlier that U.S. new home sales rose 0.2% in September to 467,000 units, missing expectations for an increase to 470,000 units.

The August figure was downwardly revised to a 15.3% climb to 466,000 units from a previously estimated 18.0% jump to 504,000 units.