NYMEX crude oil weaker in early Asia with U.S. stockpiles, Yemen eyed

Investing.com - Crude oil prices eased in Asia early Tuesday ahead of U.S. industry supply data and continued concerns of a wider conflict in Yemen.

The American Petroleum Institute reports crude, gasoline and distillate stockpiles for the end of last week later in the day, which will be followed on Wednesday by more closely-watched figures from the U.S. Department of Energy.

On the New York Mercantile Exchange, WTI crude for June delivery fell 0.50% to to $56.71 a barrel.

Overnight, crude futures fell slightly on Monday, amid the escalation of fighting in Yemen between Saudi Arabia and Shiite-led Houthi rebels.

On Sunday, Yemeni Foreign Minister Riyadh Yaseen rebuffed calls by former Yemen president Ali Abdullah Saleh, reiterating that the month-long conflict is far from being settled.

"These calls are unacceptable after all of the destruction Ali Abdullah Saleh has caused. There can be no place for Saleh in any future political talks," Yaseen told a news conference in London.

At the same time, roughly 4,000 troops in Saudi Arabia reportedly vacated their positions on the border ahead of a possible ground attack in Yemen.

Western intelligence agencies determined that Saudi troops fled their bases, military hubs and checkpoints, Iraqi news website Nahrain Net reported.

It came as reports surfaced that the sides were on the verge of reaching an accord during United Nation-led negotiations late last month, before Saudi Arabia initiated a series of air bombings that has resulted in the deaths of more than 3,000 people in Yemen, including unarmed women and children.

The Houthis agreed to abandon several cities occupied by its militias in exchange for adopting the structure for a new government, which included a reduced role for deposed, Western-backed Yemen president Abed Rabbo Mansour Hadi, according to the Wall Street Journal. The talks reportedly collapsed when Saudi Arabia launched its air campaign on March 26.

While Yemen is a minor exporter of crude, it is strategically located on the Bab el-Mandeb strait, one of the world's main chokepoints of oil. Energy traders are sensitive of any geopolitical risks involving Saudi Arabia, Opec's largest crude producer.

On the Intercontinental Exchange (ICE), Brent crude for June delivery fell 0.42 or 0.64% to $64.86 a barrel on Monday.