Oil Extends Losses In Asia

Oil.....
Crude oil futures extended losses in the Asia electronic session today taking cues from the weak Asian markets and on the weak US manufacturing data.
Asian stocks were trading mixed Tuesday with the Japanese market sharply underperforming due to a stronger yen. Japan’s Nikkei Stock Average was down 1.7% after dropping by as much as 2.7% in early trading, falling to its lowest level since March 6.

The yen strengthened against the U.S. dollar in the lead up to the Bank of Japan’s much-anticipated policy meeting later this week as investors speculated about whether or not the central bank will be able to meet the market’s easing expectations. The dollar fell below Y93.00 in early trading for the first time since March 6, and was recently at Y93.06 compared with Y93.21 late Monday in New York.
As expected the Reserve Bank of Australia on Tuesday left the country's key interest rate unchanged at 3%. The rate has been at 3% since December when monetary policy makers cut it by a quarter-percentage point. The central bank in a statement Tuesday said global growth is "forecast to be a little below average for a time, but the downside risks appear to be reduced."
Policy makers, led by Governor Glenn Stevens, also said labor costs remain contained "and businesses are focusing on lifting efficiency. These trends should help to keep inflation low, even as the effects on prices of the earlier exchange rate appreciation wane." Australia's currency was little changed after the decision, trading at $1.0466.
NYMEX light sweet crude oil futures for May delivery are trading down 25 cents at $ 96.82 per barrel in Asia electronic session today. Yesterday, it fell 16 cents, or 0.2%, to settle at $97.07 a barrel on the New York Mercantile Exchange, after touching a low under $96. The contract had tallied a gain of around 5% over the past give trading sessions. Nymex trading was closed on Friday for a holiday.
Prices rose 65 cents, or 0.7%, to settle at $97.23 a barrel on Thursday. In March, the front-month contracts rose 5.6% and 5.9% for the quarter.
The pace of expansion in the U.S. manufacturing sector slowed sharply in March to the lowest level since December, according to the closely followed ISM index. The Institute for Supply Management index fell to 51.3% from 54.2% in February.
MCX April crude futures may open today’s session near Rs 5270 levels with support around Rs 5225 levels.
Source by Commodity Insights