In Tuesday’s trading, New York-traded crude oil futures fell to some extent as investors were worried about a slowdown in the emerging-market economies which may lead to less demand for fuel and energy.WTI, the major indicator of oil prices in the US was trading lower on the New York Mercantile Exchange.
The WTI crude for delivery in March traded at USD95.72 a barrel during Asian trading. It was a decline of 0.09%. Yesterday, the New York-traded oil futures hit a session low of USD95.63 a barrel. Though at some point it reached as high as USD95.80 a barrel, it could not keep the momentum as the March contract settled at USD95.78 a barrel.
On the other hand, whereas Brent crude on the ICE futures exchange fell $1.19, or 1.1%, to $106.69 a barrel, Nymex oil futures were likely to find support at USD93.66 a barrel which is lower than what it was in Jan. 20. It has got the resistance at USD97.83 a barrel though. This is not a good indication for the Federal Reserve which is going to meet soon.
Reports are ripe that the Federal Reserve officials will consider whether to continue to wind down the central bank’s stimulus measures today. Earlier employment data from the government gave a concern for the Fed and now the fear that the global economy may slow down by the IMF may further prompt the Fed to not to cut its stimulus package.
ForexMinute has reported about the stockpiling of crude in the U.S. and its impact on prices. Earlier, the IEA had declared that as there are restrictions on exporting oil from the U.S., the increasing oil production in the country would cause a decline in oil prices and oil may actually hit the wall.
Like WTI, on the ICE Futures Exchange in London, Brent oil futures for March delivery were also down by 0.06%. It was trading at USD106.98 a barrel. Now the spread between the Brent and U.S. crude contracts stands at USD11.26 a barrel.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org