Crude dips as Europe concerns spark profit taking

Crude oil futures dipped in Asian trading early Monday as investors sold for profits on reports France and Germany may be at odds concerning a timetable to centralize eurozone banking supervision. The commodity rose in recent sessions on Federal Reserve monetary easing measures and on reports Spain may seek a bailout, though the commodity fell amid profit-taking Monday. On the New York Mercantile Exchange, light, sweet crude futures for delivery in November traded at USD92.79 a barrel on Monday, down 0.11%, off from a session high of USD92.89 and up from an earlier session low of USD92.75. Reports last week that Spain may be closer to requesting a sovereign bailout sent oil rising. The news sparked demand for oil on sentiment a Spanish bailout will steer Europe away from further economic decline, which would crimp demand for energy and fuels. Meanwhile, oil has risen in recent sessions in wake of the Federal Reserve's recent decision to roll out a third round of bond purchases from banks, a monetary policy tool known as quantitative easing. Over the weekend, however, reports surfaced suggesting Germany and France were at odds over a timeframe to centralize banking supervision, with Germany hoping to delay giving the European Central Bank more power to oversee the eurozone's financial institutions. The news sent oil dipping as investors braced for fresh policy snags that could further dealy Europe's exit from its debt crisis. On the ICE Futures Exchange, Brent oil futures for November delivery were down 0.33% and trading at USD111.19 a barrel, up USD18.40 from its U.S. counterpart.

Courtesy: ForexPros