Singapore, 25 August (Argus) — Nymex crude futures slipped below $74/bl in today's after-hours session, pulled lower by weaker equities markets.
At 08:30 GMT, the Nymex front-month October US crude futures contract was at $73.83/bl, lower by 54¢/bl from its close yesterday.
The front-month October Ice Brent crude futures contract was trading 72¢/bl lower at $73.54/bl.
The Nymex September front-month heating oil futures contract in after-hours trade fell by 1.81¢/USG to $1.9053/USG. Nymex September RBOB gasoline was down by 1.38¢/USG to $2.0353/USG.
Oil prices followed weaker Asian stock markets, with China's Shanghai stock index down by more than 5pc following comments by Chinese premier Wen Jiaobao that the economic “uncertainties” fuelled concerns about the country's recovery.
Oil is tracking equities markets because there was little fundamental support keeping Nymex crude prices in the $70-$75/bl range, analysts said.
“Inventories are high, demand is still weak, there is spare Opec capacity and spare refining capacity worldwide,” said Victor Shum, senior principal at energy consultants Purvin and Gertz in Singapore.
US crude inventories data will be closely watched this week, since data last week showed a large fall in crude stocks. Traders are trying to gauge if that was a one-off decline or indicates a trend of falling stocks.
But markets will also focus on US economic data this week, Shum said, which will inevitably impact on stock markets and move oil prices in line. US housing and consumer confidence data are due out later today.
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