Investing.com - Crude oil futures fell to an eight-week low during European morning hours on Tuesday, as appetite for growth-linked assets weakened amid concerns that Italian election results could threaten economic reforms and reignite financial instability in the euro zone.
Oil traders were also worried about impending sharp automatic U.S. spending cuts of USD85 billion, known as sequestration, due to take effect on March 1 unless Congress and the White House find a way to reach an agreement.
On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at USD92.38 a barrel during European morning trade, down 0.8% on the day.
New York-traded oil prices fell by as much as 1.1% earlier in the day to hit a session low of USD92.03 a barrel, the weakest level since January 4.
Italy’s center-left party led by the Democratic Party's Pier Luigi Bersani won the majority of votes in the lower house, the chamber of deputies, and was likely to receive the mandate to form a government.
However, projections indicated that no party would be able to form a majority in the upper house or Senate, which could send Italy back to the polls.
The news prompted investors to shun riskier assets such as stocks and commodities and move in to safe-haven assets like the U.S. dollar and Treasuries.
Market participants now looked ahead to a congressional testimony from Federal Reserve Chairman Ben Bernanke later in the trading day for further clues on the future of U.S. economic stimulus.
Commodity markets were rattled last week after the minutes of the Fed’s January meeting showed that policymakers discussed the slowing or stopping of USD85 billion in monthly bond purchases even before the job market improves.
Oil traders also awaited fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 2.3 million barrels.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for April delivery slumped 0.75% to trade at USD113.60 a barrel, with spread between the Brent and crude contracts standing at USD21.22 a barrel.
Market players looked ahead to talks between Iran and global powers in Kazakhstan later in the day to resolve the ongoing crisis over Tehran's disputed nuclear program.
Negotiators from the permanent U.N Security Council members and Germany, known as the P5+1, are set to offer Iran some relief from international sanctions if it agrees to curb its production of higher-grade enriched uranium.
Oil traders were also worried about impending sharp automatic U.S. spending cuts of USD85 billion, known as sequestration, due to take effect on March 1 unless Congress and the White House find a way to reach an agreement.
On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at USD92.38 a barrel during European morning trade, down 0.8% on the day.
New York-traded oil prices fell by as much as 1.1% earlier in the day to hit a session low of USD92.03 a barrel, the weakest level since January 4.
Italy’s center-left party led by the Democratic Party's Pier Luigi Bersani won the majority of votes in the lower house, the chamber of deputies, and was likely to receive the mandate to form a government.
However, projections indicated that no party would be able to form a majority in the upper house or Senate, which could send Italy back to the polls.
The news prompted investors to shun riskier assets such as stocks and commodities and move in to safe-haven assets like the U.S. dollar and Treasuries.
Market participants now looked ahead to a congressional testimony from Federal Reserve Chairman Ben Bernanke later in the trading day for further clues on the future of U.S. economic stimulus.
Commodity markets were rattled last week after the minutes of the Fed’s January meeting showed that policymakers discussed the slowing or stopping of USD85 billion in monthly bond purchases even before the job market improves.
Oil traders also awaited fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 2.3 million barrels.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for April delivery slumped 0.75% to trade at USD113.60 a barrel, with spread between the Brent and crude contracts standing at USD21.22 a barrel.
Market players looked ahead to talks between Iran and global powers in Kazakhstan later in the day to resolve the ongoing crisis over Tehran's disputed nuclear program.
Negotiators from the permanent U.N Security Council members and Germany, known as the P5+1, are set to offer Iran some relief from international sanctions if it agrees to curb its production of higher-grade enriched uranium.