SINGAPORE (Dow Jones)--Crude-oil futures edged lower in Asia Friday, as traders booked profits after Thursday's rally, which saw the benchmark U.S. oil contract settling at a three-month high.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $93.44 a barrel at 0612 GMT, down $0.52 in the Globex electronic session after the contract jumped 4.2% overnight. December Brent crude on London's ICE Futures exchange fell $0.31 to $111.77 a barrel after ending 2.9% higher overnight.
Overall risk sentiment remained upbeat after European leaders Thursday made a breakthrough of sorts in the euro-zone financial crisis, with Asian stock markets rallying for a second day. However, some oil traders were quick to consolidate gains as prices moved higher.
Crude's upside momentum was "countered by overbought conditions and weakness in cash trades in Asia for commodities like steel and copper," MF Global said in a research note.
Market participants warned that global macroeconomic conditions remain fragile, while Europe still has many hurdles to clear.
"We do not think the European agreement ends the debt crisis, and there will be the need for another emergency summit in the not-too-distant future," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman. "Exaggerated growth forecasts and inflated privatization revenue projections will require additional adjustments going forward," he added.
Still, several energy and commodities consulting firms said crude will likely maintain its uptrend, at least in the near term, as equities and weather work in favor of oil demand.
"It is all about risk appetite again and we look for a renewed close correlation between the stock market and industrial commodities such as oil and copper going forward into the new month of November," Ritterbusch and Associates said in a note.
Cameron Hanover said, "Winter seems to be making its unofficial first appearance early this year. This should bring in buying for heating oil."
Nymex reformulated gasoline blendstock for November--the benchmark gasoline contract--fell 105 points to $2.7315 a gallon, while November heating oil traded at $3.0955, 29 points lower.
ICE gasoil for November changed hands at $972.00 a metric ton, up $2.25 from Thursday's settlement. Read more
-By Ga-Woon Philip Vahn, Dow Jones Newswires; +65-64154149; philip.vahn@dowjones.com
On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $93.44 a barrel at 0612 GMT, down $0.52 in the Globex electronic session after the contract jumped 4.2% overnight. December Brent crude on London's ICE Futures exchange fell $0.31 to $111.77 a barrel after ending 2.9% higher overnight.
Overall risk sentiment remained upbeat after European leaders Thursday made a breakthrough of sorts in the euro-zone financial crisis, with Asian stock markets rallying for a second day. However, some oil traders were quick to consolidate gains as prices moved higher.
Crude's upside momentum was "countered by overbought conditions and weakness in cash trades in Asia for commodities like steel and copper," MF Global said in a research note.
Market participants warned that global macroeconomic conditions remain fragile, while Europe still has many hurdles to clear.
"We do not think the European agreement ends the debt crisis, and there will be the need for another emergency summit in the not-too-distant future," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman. "Exaggerated growth forecasts and inflated privatization revenue projections will require additional adjustments going forward," he added.
Still, several energy and commodities consulting firms said crude will likely maintain its uptrend, at least in the near term, as equities and weather work in favor of oil demand.
"It is all about risk appetite again and we look for a renewed close correlation between the stock market and industrial commodities such as oil and copper going forward into the new month of November," Ritterbusch and Associates said in a note.
Cameron Hanover said, "Winter seems to be making its unofficial first appearance early this year. This should bring in buying for heating oil."
Nymex reformulated gasoline blendstock for November--the benchmark gasoline contract--fell 105 points to $2.7315 a gallon, while November heating oil traded at $3.0955, 29 points lower.
ICE gasoil for November changed hands at $972.00 a metric ton, up $2.25 from Thursday's settlement. Read more
-By Ga-Woon Philip Vahn, Dow Jones Newswires; +65-64154149; philip.vahn@dowjones.com
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