NYMEX crude falls in Asia with China markets shut, Greece vote ahead

Investing.com - Crude oil prices eased Monday in early Asia with markets in China shut and investors looking ahead to a parliament vote in Greece to pass reforms to secure further euro zone loans.

On the New York Mercantile Exchange, crude oil for delivery in April fell 0.66% at $50.45 a barrel.

Last week, West Texas Intermediate oil futures fell sharply on Friday, after data showed that the pace of falling rigs in the U.S. slowed last week, underlining concerns over a glut in supplies.

Industry research group Baker Hughes (NYSE:BHI) said Friday that the number of rigs drilling for oil in the U.S. fell by just 37 in the past week, the smallest weekly drop this year and compared to a decline of 84 rigs in the preceding week.

The number of rigs drilling for oil in the U.S. totaled 1,019 last week, the lowest since August 2011. The number of oil rigs has declined in 16 of the last 19 weeks since hitting an all-time high of 1,609 in mid-October.

Also last week, data showed that oil supplies in the U.S. rose to the highest level on record last week.

Total U.S. crude oil inventories stood at 425.6 million barrels, the most in at least 80 years, indicating that cheap prices have yet to affect output.

Elsewhere, on the ICE Futures Exchange in London, Brent for April delivery eased up 1 cent, or 0.02%, on Friday to settle the week at $60.22 a barrel by close of trade.

Oil prices have fallen sharply in recent months as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.

Meanwhile, market sentiment received a boost after euro zone finance ministers agreed on a deal to extend Greece’s €240 billion bailout by four months late on Friday.

Athens has until Monday to present a list of reforms to be approved by the country’s creditors in order to secure the extension, which will give it more time to reach a lasting agreement with its creditors.

Greece faces the risk of default and exit from the single currency region if the country does not obtain an extension beyond the February 28 deadline.

In the week ahead, traders will be watching Monday’s deadline on Greece's financial rescue package.

Market players will also be eyeing Tuesday’s testimony by Federal Reserve Chair Janet Yellen to the Senate Banking Committee will be closely watched for any indication on when U.S. interest rates may start to rise.

On Monday in Germany, the Ifo research group is to publish its report on business climate.

Later Monday, the U.S. is to publish a report on existing home sales.