Crude oil posts modest decline on conflicting economic data

Oil prices dropped slightly in Asian trading on Wednesday as traders priced in conflicting economic data, with investors increasingly unsure of the state of the global economy.

On the New York Mercantile Exchange, oil futures for March delivery were down just 0.02% at USD96.62 per barrel in Asian trading, up from a session low of USD96.52 and down from a high of USD96.69 per barrel.

Oil futures were likely to test support at USD95.43 per barrel, the low from January 23, and resistance at USD97.99, a high from January 30.

Crude oil, as the primary energy source for the world’s developed economies, is sensitive to economic indicators: Positive indicators suggestive of growth stoke demand for crude oil, while negative ones that suggest weak future demand tend to weigh on shares.Continue Reading