Crude oil prices enjoy mixed fortunes
LONDON—World oil prices traded mixed on Thursday as traders balanced ongoing Iranian tensions with stubborn concerns over the outlook for global energy demand.
New York’s main contract, West Texas Intermediate (WTI) crude for delivery in March, fell 76 cents to $96.85 per barrel.
But Brent North Sea crude for March delivery rose 51 cents to $112.07 a barrel in London afternoon deals.
“Crude futures were mixed over the past week as geopolitics was still underpinning Brent, while WTI remained under pressure from persistent demand concerns,” said VTB Capital analyst Andrey Kryuchenkov.
The oil market slid Wednesday as new US government data showed a slower pace of petroleum consumption.
Encouraging economic data especially from China, where manufacturing activity expanded in January, helped the oil price early on Wednesday.
Traders were also inspired by similar pickups in the manufacturing sectors of the United States and the eurozone.
However, weekly American oil data showed slower refinery throughput and mounting crude stocks, raising concerns about demand.
Meanwhile, on Tuesday, US lawmakers unveiled proposals for fresh sanctions on Tehran as talks between Iranian officials and a delegation from the International Atomic Energy Agency wrapped up with no sign of any breakthrough over the Arab nation’s nuclear program.
And across in Europe, while an agreement on stricter controls to maintain balanced budgets was welcomed, continued wrangling over a Greek debt writedown by its creditors means that the country’s debt crisis remains unresolved.
Traders are also eagerly awaiting Friday’s crucial non-farm payrolls data in the United States, which is the world’s biggest oil-consuming nation.
“We expect trading volumes to remain fairly thin today, ahead of the release of the US employment figures tomorrow that could give some direction to the markets,” added Sucden analyst Myrto Sokou.
“In the meantime, currency movements and any further news from Greece regarding its debt issues and the outcome of the talks might be beneficial for the market, offering some support.”
