Crude oil drops slightly after weak Korean, Australian data

Oil prices droped slightly in Asian trading on Monday as traders priced in economic data that showed South Korea and Australia’s economies may be weakening. At the same time, investors eagerly Australia’s interest rate decision.

On the New York Mercantile Exchange, oil futures for April delivery were down just 0.07% at USD90.61 per barrel in Asian trading, up from a session low of USD90.53 and down from a high of USD90.78 per barrel.

Oil futures were likely to test support at USD90.34 per barrel, the low from Friday, and resistance at USD94.22, a high from February 25.

Crude oil, as the primary energy source for the world’s developed economies, is sensitive to economic indicators, particularly those that suggest economic growth. With data from Japan and Australia suggesting that their economies might be weakening, the demand for crude oil could decline.Continue Reading...