Following Lowest Finish of the Year, Oil Continues Declining

Following Lowest Finish of the Year, Oil continues Declining
Following Lowest Finish of the Year, Oil continues Declining

Asian trading session on Tuesday indicated lower trading trends for oil futures, even after sliding to the lowest finish of the year, as seen in the U.S. session on Monday, with traders processing disappointing economic data from China. The light sweet crude futures scheduled for June delivery slipped 1.74% to USD87.48 a barrel during the Asian trading on Tuesday subsequent to finishing low 2.74% at a value of USD89.10 per barrel on Monday in the U.S. session, as per the New York Mercantile Exchange. That reading was considered the lowest closing value for New York-traded oil, this year. After the announcement of news related to the U.S. and Chinese economies, traders were also abandoning commodities and assets, which presented risks.

On Monday, data concerning Beijing, indicated that gross domestic product for China had increased by 7.7% , as seen in the three months to March, lower from 7.9% in the fourth quarter and significantly below speculations for 8.0% growth. Other data also revealed that industrial production in China has increased 8.9% on-year, as observed in the month of March, and the value was under market forecasts of 10.0% growth and also lower than a 9.9% value in February.

Brent futures scheduled for June delivery dropped 0.69% to a value of USD99.08.

A look at the trends of gold futures indicated that they maintain to flow lower in the initial part of Asian trading session on Tuesday, following a sell-off during the U.S. session, the previous day. Gold futures scheduled for June delivery slid 0.42% to a value of USD1,355.45 a troy ounce during the Asian trading session on Tuesday after finishing down 9.22% at USD1,362.95 per troy ounce in U.S. trading earlier in theday. This was also seen as the worst one-day performance of the precious metal in 30 years.

Gold futures were expected to locate support at USD1,354.45 per troy ounce, Feb. 14, 2011, and find resistance at USD1,418.75, high seen on Feb. 24, 2011.

In Asian trade session today, Comex silver for scheduled for May delivery plummeted another 3.77% to USD22.480 an ounce. Copper scheduled for May delivery fell 0.69% to USD3.252 an ounce.