Breaking News

Crude oil stays lower after U.S. housing data; Cyprus fears weigh

CommoditiesMar 19, 2013 10:46AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Investing.com - Crude oil futures stayed lower during U.S. morning hours on Tuesday, despite upbeat data on U.S. building permits, which added to the view that the country’s economic recovery is gaining traction.

Oil prices struggled as concerns over a controversial bailout deal for Cyprus continued to weigh on appetite for riskier assets.

On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at USD93.87 a barrel during U.S. morning trade, down 0.25% on the day.

New York-traded oil prices held in a range between USD93.69 a barrel, the daily low and a session high of USD94.45 a barrel, which was strongest level since February 25.

In the U.S., official data showed that the number of building permits issued increased to the highest level since June 2008 in February, while housing starts rose more-than-expected, underlining the view that the country’s economic recovery is gaining momentum.

The Commerce Department said the number of building permits issued in February rose 4.6% to a seasonally adjusted 0.946 million, above expectations for a 2.3% increase to 0.925 million units.

U.S. housing starts rose by 0.8% last month to a seasonally adjusted 0.917 million, compared to expectations for an increase to 0.915 million.

Oil traders 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 million barrels.

Market players also looked ahead to the Federal Reserve’s two-day policy meeting due to begin later in the day, as investors try to assess the central bank's attitude towards monetary stimulus.

Data on Friday showed that U.S. inflation was contained in February, leaving the way clear for the central bank to continue its bond-buying program.

The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.

But sentiment remained under pressure amid concerns that the parliament in Cyprus could reject a bill on a bank deposit tax needed for the country to secure a bailout in a vote later Tuesday.

Earlier in the day, the government submitted a new deposit tax bill that would scrap the tax on bank deposits below EUR20, 000.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery lost 0.6% to trade at USD108.84 a barrel, with the spread between the Brent and crude contracts standing at USD14.97 a barrel, the narrowest differential since January 17.

Crude oil stays lower after U.S. housing data; Cyprus fears weigh

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post also to:
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email