Oil inches up as traders ponder U.S. housing data

Mcx Crudeoil Tips @ www.mcxfreetips.com

                 CrudeOil futures traded slightly higher during Tuesday’s Asian session as traders in the region took their turn digesting some mediocre U.S. housing data. 

On the New York Mercantile Exchange, light, sweet crudeOil futures for June delivery nudged up 0.07% to USD89.25 per barrel in Asian trading Tuesday after settling up 0.91% at USD89.07 a barrel on Monday in the U.S. 

Oil fought off the day’s marquee data point. In U.S. economic news, the National Association of Realtors said existing home sales dropped 0.6% to a seasonally adjusted annual rate of 4.92 million in March from a downwardly revised 4.95 million in February. Economists expected an increase in March, but the number was still higher by 10.3% on a year-over-year basis. 

Housing is considered an integral sign of economic health in the U.S. and is viewed by many traders as an important sign regarding energy demand. 

Traders will now turn their attention to the HSBC flash reading of China’s purchasing managers index for April due out later Tuesday. China’s March PMI rose to 51.7 from 50.4 in February, but that is below the two-year high seen in January. 

Readings above 50 signal expansion. The U.S. and China are the world’s two largest oil consumers. 

Elsewhere, Libya is petitioning the Organization of the Petroleum Exporting Countries to increase its production quota. Libya’s previous quota was set at 1.47 million barrels per day, but the North African country is currently pumping 1.5 million barrels per day. 

Libya is also planning to offer new exploration concessions. The country is home to Africa’s largest oil reserves. 

Elsewhere, Brent crude for June delivery inched lower by 0.07% to USD100.40 per barrel on the ICE Futures Exchange.
Courtesy : Investing.com