Investing.com - Crude oil futures eased up slightly on Wednesday, but remained close to the lowest level since mid-February amid growing concerns over the global economic outlook.
On the New York Mercantile Exchange, light sweet crude futures for delivery in May traded at USD101.14 a barrel during European morning trade, easing up 0.1%.
It earlier rose by as much as 0.55% to trade at a daily high of USD101.67 a barrel. Oil futures dropped to as low as USD100.70 a barrel on Tuesday, the lowest since February 14.
Crude prices lost nearly 1.5% on Tuesday as fears that Spain will be the next country in the euro zone to require a bailout added to the uncertainty over the global economy.
Concerns over Spanish borrowing costs intensified as the yield on the country’s 10-year government bond ticked up to 6.01% on Tuesday, the highest since November.
The increase in yields came as Spain’s Economy Minister Luis de Guindos declined to rule out an international bailout, while Bank of Spain Governor Miguel Angel Fernandez Ordonez said the nation’s lenders may need extra capital if the economy weakens more than expected.
Spanish 10-year yields eased slightly to 5.94% in early trade Wednesday, while Italy’s 10-year government bond yield stood at 5.64%, after rising to as high as 5.73% on Tuesday.
The news came amid mounting fears over global growth prospects, especially in the U.S. and in China, the world’s two largest economies, which in turn have triggered worries over global oil demand.
The U.S. Energy Information Administration on Tuesday forecast global oil consumption to average 88.81 million barrels per day in 2012, compared with last month's projection of 88.96 million.
The agency added that it expects oil markets to weaken this year, despite an expected decline in Iranian oil exports, when a European Union embargo on Iranian crude comes into effect in July.
Oil traders were now turning their attention to the EIA’s closely-watched weekly report on U.S. stockpiles of crude and refined products later in the day.
The report was expected to show that U.S. crude oil stockpiles rose by 2.1 million barrels last week to the highest level since 1990 for this time of year, underscoring fears over a slowdown in oil demand from the U.S.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories soared by 6.58 million barrels last week, significantly above expectations for a gain of 2.1 million barrels.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery fell 0.5% to trade at 118.92 a barrel, with the spread between the Brent and crude contracts standing at USD17.78 a barrel.
On the New York Mercantile Exchange, light sweet crude futures for delivery in May traded at USD101.14 a barrel during European morning trade, easing up 0.1%.
It earlier rose by as much as 0.55% to trade at a daily high of USD101.67 a barrel. Oil futures dropped to as low as USD100.70 a barrel on Tuesday, the lowest since February 14.
Crude prices lost nearly 1.5% on Tuesday as fears that Spain will be the next country in the euro zone to require a bailout added to the uncertainty over the global economy.
Concerns over Spanish borrowing costs intensified as the yield on the country’s 10-year government bond ticked up to 6.01% on Tuesday, the highest since November.
The increase in yields came as Spain’s Economy Minister Luis de Guindos declined to rule out an international bailout, while Bank of Spain Governor Miguel Angel Fernandez Ordonez said the nation’s lenders may need extra capital if the economy weakens more than expected.
Spanish 10-year yields eased slightly to 5.94% in early trade Wednesday, while Italy’s 10-year government bond yield stood at 5.64%, after rising to as high as 5.73% on Tuesday.
The news came amid mounting fears over global growth prospects, especially in the U.S. and in China, the world’s two largest economies, which in turn have triggered worries over global oil demand.
The U.S. Energy Information Administration on Tuesday forecast global oil consumption to average 88.81 million barrels per day in 2012, compared with last month's projection of 88.96 million.
The agency added that it expects oil markets to weaken this year, despite an expected decline in Iranian oil exports, when a European Union embargo on Iranian crude comes into effect in July.
Oil traders were now turning their attention to the EIA’s closely-watched weekly report on U.S. stockpiles of crude and refined products later in the day.
The report was expected to show that U.S. crude oil stockpiles rose by 2.1 million barrels last week to the highest level since 1990 for this time of year, underscoring fears over a slowdown in oil demand from the U.S.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories soared by 6.58 million barrels last week, significantly above expectations for a gain of 2.1 million barrels.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery fell 0.5% to trade at 118.92 a barrel, with the spread between the Brent and crude contracts standing at USD17.78 a barrel.