Oil prices were slightly higher today after getting pushed down by demand concerns in Europe and the United States last week and on Monday with Brent Crude slipping below US$70/barrel to hit its four month lows.
European stock markets got hit by concerns over the debt situation in euro zone countries Greece, Portugal and Spain, which have also weakened Europe’s single currency to prop the US Dollar and make crude, which trades in the greenback, more expensive for holders of other currencies. Last week’s disappointing employment data that came out in the US also raised doubts about the strength of the ongoing economic recovery to further weigh commodities down.
The US Dollar was slightly lower on Tuesday as fears that Greece’s debt problems may be shared by other euro zone countries eased, helping oil prices to small gains. No major economic updates are due out this week and oil prices are currently moving along with currency and stock markets. Investors will be looking for cues on Tuesday, when the API (American Petroleum Institute) releases its inventories report, which will be followed by data from the US Department of Energy on Wednesday.
March Brent Crude reached US$71.05/barrel, while US light, sweet crude traded at US$72.35/barrel on the New York Mercantile Exchange.