The Asian Markets opened Wednesday to a minor slump in the crude oil rates. Traders seemed bit apprehensive about the economic outlook worldwide as the contradictory economic data failed to assure the investors about any positive changes in the coming days.
Among all commodities, crude oil has always been more susceptible to the economic indicators. The main reason behind the vulnerability is that crude oil is a vital energy resource. If the economic indicators look strong, then it usually means that the demand for oil is increasing, while a decline in demand, coming from weak indicators takes a toll on shares.
Crude oil saw a decline of around 0.02 percent on the New York Mercantile Exchange. In Asian trading, it was trading at $96.62 per barrel, which was higher than the $96.52 mark, but lower than the $96.69 level.
It was expected that oil futures would be supported at $95.43 per barrel as it reached on 23rd January, while it might face some resistance if the prices went up to the level it reached on 30th January, $97.99 per barrel. However, back in January, the prices for oil remained constant, given that trading enthusiasts were not sure how the global economy would move.
But currently, the state of various economies in the world looks negative. The retail sales figures from Australia posted a decrease of 0.2 percent, while it was expected to rally by 0.3 percent. Apart from the Australian economy, the economic condition of Italy was also doubtful as the services PMI in the country reached a mark of 43.9, while the anticipated level was supposed to be 45.8.
Some investors saw a little hope after some positive news came from Spain, Germany, and the United Kingdom, as the services PMI of these countries rallied over the expected levels. The PMI of Spain was at 47, slightly more than the expected level of 44.1. Germany’s services PMI went over its estimated value, 55.3, to reach at 55.7. A similar increase was seen in services PMI of the UK, as it went over the 49.8 mark to level at 51.5.
Traders might find the Brent oil future impressive, as the deliverables for January rose by 0.07 percent to a price of $116.63 per barrel.