Crude Oil Prices Drop as Demand Recovery Hopes Fade, Non-OPEC Supply Increases
Crude oil prices declined early Tuesday on fading expectations of demand recovery and rising supply from producers that aren't part of the Organization of the Petroleum Exporting Countries.
Brent crude lost 0.3% to US$76.10 per barrel and West Texas Intermediate crude fell 0.4% to US$73.29 at last look. Concerns about tighter Russian and Iranian supply due to sanctions capped losses, Reuters said in a Tuesday report.
"This week's weakness is likely due to a technical correction, as traders react to softer economic data globally that undermines the optimism seen earlier," Reuters quoted Priyanka Sachdeva, senior market analyst at Phillip Nova, as saying.
Increased non-OPEC output is expected to keep the oil market well-supplied, exacerbated by weak demand from China, the report said.
The market is also waiting for economic data, including the U.S. December nonfarm payrolls report, for clues on U.S. interest rate policy and oil demand outlook, Reuters reported.
Source: MT newswires
