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Crude-oil futures edged lower in Asian trade on Monday after Nymex
tumbled 1.5% Friday on concerns about the $85 billion in U.S. automatic
budget cuts started on Friday.
Bearish macroeconomic data from China on Sunday added to worries.
On the New York Mercantile Exchange light, sweet crude futures for delivery in April traded at $90.44 a barrel at 0628 GMT--down $0.24 in the Globex electronic session. April Brent crude on London's ICE Futures exchange fell $0.04 to $110.36 a barrel.
China's official non-manufacturing Purchasing Managers' Index fell on month in February raising concerns about growth in the world's second-largest economy, a Singapore-based trader said. "Over more recent days worries about QE coming to an end in the U.S. and plentiful supply combined with more bearish sentiment about the outlook for Europe in response to concerns arising from the partial election results in Italy have lowered energy demand," National Australia Bank said in a note Monday.
The lack of pipeline capacity in the U.S. Midwest to shift a surge in U.S. oil production has caused a glut in Nymex which has also weighed on prices, NAB said. As a result, the spread between Nymex and global benchmarks has widened considerably, it added.
The Brent-Nymex spread is up from around US$16/bbl in mid January to more than $19/bbl currently.
"We will continue to suggest a sharp contrast between WTI [Nymex] and Brent fundamentals that should support a lift in April differentials into the $20-$21/bbl," Jim Ritterbusch at Ritterbusch & Associates said in a research note late Friday.
"In addition to the different curve shapes in which the Brent spreads have been strengthening off of Buzzard Field repair we will also cite continued lofty U.S. crude supplies both in total and at Cushing where stocks remain within easy reach of record levels," Mr. Ritterbusch said.
Meanwhile, investors will seek fresh cues from economic data such as the United Kingdom construction PMI for February and from any news coming out of the meeting of euro-zone finance ministers in Brussels scheduled for Monday, a Tokyo-based trader said, tipping psychological support for the U.S. benchmark at $90/bbl.
Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--fell 73 points to $3.1213 a gallon while April heating oil traded five points higher at $2.9306.
ICE gasoil for March changed hands at $924.00 a metric ton--up $3.50 from Friday's settlement.
Bearish macroeconomic data from China on Sunday added to worries.
On the New York Mercantile Exchange light, sweet crude futures for delivery in April traded at $90.44 a barrel at 0628 GMT--down $0.24 in the Globex electronic session. April Brent crude on London's ICE Futures exchange fell $0.04 to $110.36 a barrel.
China's official non-manufacturing Purchasing Managers' Index fell on month in February raising concerns about growth in the world's second-largest economy, a Singapore-based trader said. "Over more recent days worries about QE coming to an end in the U.S. and plentiful supply combined with more bearish sentiment about the outlook for Europe in response to concerns arising from the partial election results in Italy have lowered energy demand," National Australia Bank said in a note Monday.
The lack of pipeline capacity in the U.S. Midwest to shift a surge in U.S. oil production has caused a glut in Nymex which has also weighed on prices, NAB said. As a result, the spread between Nymex and global benchmarks has widened considerably, it added.
The Brent-Nymex spread is up from around US$16/bbl in mid January to more than $19/bbl currently.
"We will continue to suggest a sharp contrast between WTI [Nymex] and Brent fundamentals that should support a lift in April differentials into the $20-$21/bbl," Jim Ritterbusch at Ritterbusch & Associates said in a research note late Friday.
"In addition to the different curve shapes in which the Brent spreads have been strengthening off of Buzzard Field repair we will also cite continued lofty U.S. crude supplies both in total and at Cushing where stocks remain within easy reach of record levels," Mr. Ritterbusch said.
Meanwhile, investors will seek fresh cues from economic data such as the United Kingdom construction PMI for February and from any news coming out of the meeting of euro-zone finance ministers in Brussels scheduled for Monday, a Tokyo-based trader said, tipping psychological support for the U.S. benchmark at $90/bbl.
Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--fell 73 points to $3.1213 a gallon while April heating oil traded five points higher at $2.9306.
ICE gasoil for March changed hands at $924.00 a metric ton--up $3.50 from Friday's settlement.
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