Investing.com - Crude oil futures moved sharply lower Tuesday, following reports that Greek politicians failed to agree a government at talks forcing new elections likely June, in addition to a stronger greenback.
On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD93.91 a barrel during U.S. afternoon trade, plunging 0.94%.
It earlier rose by 0.5% to trade at a session high of USD95.48 a barrel. Prices touched USD93.64 a barrel on Monday, the lowest since December 19, 2011.
Oil futures erased gains after Panos Kammenos, leader of a conservative party that opposes Greece's international bailout deal, said that no deal on a collation government had been reached.
A caretaker government will be appointed Wednesday, with new elections likely in early June, fanning fears over a potential Greek default and eventual exit from the euro zone.
Oil futures were higher earlier in the day the Federal Reserve Bank of New York said that its general business conditions index jumped to 17.1 in May from 6.6 in April. Analysts had expected the index to rise to 8.5 in May.
The data came after the U.S. Census Bureau said that retail sales inched up 0.1% in April, disappointing expectations for a 0.2% gain and growing at the weakest pace in four months.
A separate report showed that core consumer prices rose 0.2% in April, in line with expectations, while consumer prices, including food and energy costs, were flat last month for the first time since December.
Better-than-expected German growth data also provided support. Germany’s gross domestic product grew by a seasonally adjusted 0.5% in the three months to March, above expectations for a growth of 0.1%. German GDP contracted by an unrevised 0.2% in the fourth quarter of 2011.
The broader euro-zone GDP measure, meanwhile, held steady on a quarterly and yearly basis, the statistical office of the European Union, Eurostat, said.
Meanwhile, market participants were awaiting fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 1.54 million barrels last week to the highest level since August 1990, underscoring fears over a slowdown in oil demand from the U.S.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Nymex crude prices have come under heavy selling pressure over the past week, losing nearly 10.5% since May 1, as concerns lingered over a widening economic slowdown that may cut demand for energy and as tensions have eased between Iran and Western nations over the country’s nuclear program.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for July delivery added 0.4% to trade at 111.44 a barrel, with the spread between the Brent and crude contracts standing at USD16.94.
Brent crude, the European benchmark, is more than 13% off its intraday high of USD128.38 hit on March 1.
The U.S. dollar index which tracks the performance of the greenback against a basket of its counterparts surged 0.65% to trade at 81.31 reducing demand for oil.
A potential loss of Iranian oil supplies has helped underpin strong gains in oil prices during late last year and the first quarter of this year.
But revived talks between Iran and major powers over Tehran's nuclear ambitions, along with rising Saudi Arabian and Libyan output and signs of slower U.S. economic and employment growth, helped pull oil prices back from first-quarter highs.
On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD93.91 a barrel during U.S. afternoon trade, plunging 0.94%.
It earlier rose by 0.5% to trade at a session high of USD95.48 a barrel. Prices touched USD93.64 a barrel on Monday, the lowest since December 19, 2011.
Oil futures erased gains after Panos Kammenos, leader of a conservative party that opposes Greece's international bailout deal, said that no deal on a collation government had been reached.
A caretaker government will be appointed Wednesday, with new elections likely in early June, fanning fears over a potential Greek default and eventual exit from the euro zone.
Oil futures were higher earlier in the day the Federal Reserve Bank of New York said that its general business conditions index jumped to 17.1 in May from 6.6 in April. Analysts had expected the index to rise to 8.5 in May.
The data came after the U.S. Census Bureau said that retail sales inched up 0.1% in April, disappointing expectations for a 0.2% gain and growing at the weakest pace in four months.
A separate report showed that core consumer prices rose 0.2% in April, in line with expectations, while consumer prices, including food and energy costs, were flat last month for the first time since December.
Better-than-expected German growth data also provided support. Germany’s gross domestic product grew by a seasonally adjusted 0.5% in the three months to March, above expectations for a growth of 0.1%. German GDP contracted by an unrevised 0.2% in the fourth quarter of 2011.
The broader euro-zone GDP measure, meanwhile, held steady on a quarterly and yearly basis, the statistical office of the European Union, Eurostat, said.
Meanwhile, market participants were awaiting fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 1.54 million barrels last week to the highest level since August 1990, underscoring fears over a slowdown in oil demand from the U.S.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Nymex crude prices have come under heavy selling pressure over the past week, losing nearly 10.5% since May 1, as concerns lingered over a widening economic slowdown that may cut demand for energy and as tensions have eased between Iran and Western nations over the country’s nuclear program.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for July delivery added 0.4% to trade at 111.44 a barrel, with the spread between the Brent and crude contracts standing at USD16.94.
Brent crude, the European benchmark, is more than 13% off its intraday high of USD128.38 hit on March 1.
The U.S. dollar index which tracks the performance of the greenback against a basket of its counterparts surged 0.65% to trade at 81.31 reducing demand for oil.
A potential loss of Iranian oil supplies has helped underpin strong gains in oil prices during late last year and the first quarter of this year.
But revived talks between Iran and major powers over Tehran's nuclear ambitions, along with rising Saudi Arabian and Libyan output and signs of slower U.S. economic and employment growth, helped pull oil prices back from first-quarter highs.