Investing.com - Oil futures are trading slightly higher during the early going in Wednesday’s Asian despite news that Cyprus’s parliament rejected the plan offered by the European to tax bank deposits in the tiny island nation.
On the New York Mercantile Exchange, light, sweet crude futures for April delivery rose 0.01% to USD92.53 per barrel in Asian trading Wednesday after falling slightly during Tuesday’s U.S. session. New York-traded oil prices held in a range between USD93.69 a barrel, the daily low and a session high of USD94.45 a barrel, which was strongest level since February 25.
Traders appear to be focusing more on Cyprus than the most recent economic data out of the U.S., the world’s largest oil consumer. In economic news, the Commerce Department said U.S. housing starts increased 0.8% last month a to seasonally-adjusted rate of 917,000. Permits to build new homes rose 4.6% to 946,000 units, the best rate since June 2008. Single-family housing starts increased 0.5%.
Late Tuesday, Cypriot policymakers rejected the highly unpopular plan that would tax bank deposits in the country of less than EUR100,000 at a rate of 6.75% and deposits north of that amount at a rate of 9.9%. The vote casts doubt on the ability of the country to secure bailout funding and has prompted fears Cyprus could go bankrupt and be forced out of the euro zone.
While Cyprus has rejected one plan, some market participants expect another plan will be forthcoming as European policymakers do not want to tempt fate and risk the departure of any of the euro zone member states.
Elsewhere, Mexico, one of Latin America’s largest oil producers, is considering opening its state-controlled oil sector to foreign investment an effort to stem years of declining output. Mexican President Enrique Pena Nieto has cautioned that if his country does not drastically alter its energy landscape it could be an importer of energy resources by 2020.
Meanwhile, Brent crude for May delivery rose 0.08% to USD107.60 per barrel on the ICE Futures Exchange.
On the New York Mercantile Exchange, light, sweet crude futures for April delivery rose 0.01% to USD92.53 per barrel in Asian trading Wednesday after falling slightly during Tuesday’s U.S. session. New York-traded oil prices held in a range between USD93.69 a barrel, the daily low and a session high of USD94.45 a barrel, which was strongest level since February 25.
Traders appear to be focusing more on Cyprus than the most recent economic data out of the U.S., the world’s largest oil consumer. In economic news, the Commerce Department said U.S. housing starts increased 0.8% last month a to seasonally-adjusted rate of 917,000. Permits to build new homes rose 4.6% to 946,000 units, the best rate since June 2008. Single-family housing starts increased 0.5%.
Late Tuesday, Cypriot policymakers rejected the highly unpopular plan that would tax bank deposits in the country of less than EUR100,000 at a rate of 6.75% and deposits north of that amount at a rate of 9.9%. The vote casts doubt on the ability of the country to secure bailout funding and has prompted fears Cyprus could go bankrupt and be forced out of the euro zone.
While Cyprus has rejected one plan, some market participants expect another plan will be forthcoming as European policymakers do not want to tempt fate and risk the departure of any of the euro zone member states.
Elsewhere, Mexico, one of Latin America’s largest oil producers, is considering opening its state-controlled oil sector to foreign investment an effort to stem years of declining output. Mexican President Enrique Pena Nieto has cautioned that if his country does not drastically alter its energy landscape it could be an importer of energy resources by 2020.
Meanwhile, Brent crude for May delivery rose 0.08% to USD107.60 per barrel on the ICE Futures Exchange.