Crude-oil futures were slightly higher in Asia trade Monday, paring losses sustained Friday, as regional equities rose following easing geopolitical concerns over unrest in Egypt after Friday's resignation of President Hosni Mubarak.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $85.70 a barrel at 0649 GMT, up $0.12 in the Globex electronic session. April Brent crude on London's ICE Futures exchange rose $0.73 to $101.67 a barrel.
Expectations of easing unrest in Egypt weighed on Nymex crude Friday, sending prices to a two-month low as the market began factoring in the lower risk of a disruption in global crude supply. Brent also fell, but recovered all of its losses in the Asia session Monday.
Jim Ritterbusch at Ritterbusch & Associates said despite the easing of tensions in Egypt, uncertainty is still supporting Brent.
"The European oil markets still appear reluctant to part with much risk premium related to the Mideast. While some definition has been provided now that President Mubarak has stepped down, the situation remains uncertain and is worthy of some security premium."
While Brent crude remains supported by a tight North Sea market, Nymex futures may stay under pressure as market focus returns to fundamentals. Record-high inventories at Cushing, Okla.--the delivery point for the West Texas Intermediate crude contract--are also weighing on Nymex.
"The nearby March-April WTI spread has stretched beyond $3.50 a barrel, a strong indication of a renewed upswing in Cushing supplies. We look for Cushing stocks to eventually push to above 40 million barrels," Ritterbusch said.
Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--rose 212 points to $2.4864 a gallon, while March heating oil traded at $2.7159, 201 points higher.
ICE gasoil for March changed hands at $854.75 a metric ton, up $4.50 from Friday's settlement.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $85.70 a barrel at 0649 GMT, up $0.12 in the Globex electronic session. April Brent crude on London's ICE Futures exchange rose $0.73 to $101.67 a barrel.
Expectations of easing unrest in Egypt weighed on Nymex crude Friday, sending prices to a two-month low as the market began factoring in the lower risk of a disruption in global crude supply. Brent also fell, but recovered all of its losses in the Asia session Monday.
Jim Ritterbusch at Ritterbusch & Associates said despite the easing of tensions in Egypt, uncertainty is still supporting Brent.
"The European oil markets still appear reluctant to part with much risk premium related to the Mideast. While some definition has been provided now that President Mubarak has stepped down, the situation remains uncertain and is worthy of some security premium."
While Brent crude remains supported by a tight North Sea market, Nymex futures may stay under pressure as market focus returns to fundamentals. Record-high inventories at Cushing, Okla.--the delivery point for the West Texas Intermediate crude contract--are also weighing on Nymex.
"The nearby March-April WTI spread has stretched beyond $3.50 a barrel, a strong indication of a renewed upswing in Cushing supplies. We look for Cushing stocks to eventually push to above 40 million barrels," Ritterbusch said.
Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--rose 212 points to $2.4864 a gallon, while March heating oil traded at $2.7159, 201 points higher.
ICE gasoil for March changed hands at $854.75 a metric ton, up $4.50 from Friday's settlement.
The price just keeps going higher and higher.
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