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MTECHTIPS:-Crude oil trades flat as Spain fears counter Fed easing hopes
Crude oil futures were largely unchanged during European morning trade on Monday, as hopes for another round of easing from the Federal Reserve were countered by growing concerns over Spain’s economic outlook.On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD104.92 a barrel during European morning trade, easing down 0.01%.The June contract traded in a tight range between USD105.04, the daily high and the highest since April 17, and a session low of USD104.67 a barrel.Oil prices remained supported as the U.S. dollar weakened broadly after Friday’s disappointing data on first-quarter U.S. economic growth fuelled expectations for another round of easing from the Federal Reserve.The Commerce Department said the U.S. economy expanded at a rate of 2.2% in the three months to March, below expectations for a 2.5% increase and slower than the 3.0% pace in the prior three months.Despite improving consumer demand, reduced government spending and business investment cut into growth.The disappointing data fuelled expectations that the Fed will introduce further monetary easing measures to boost growth in the world’s largest economy after Fed chief Ben Bernanke left open the possibility following the bank’s monetary policy meeting last week, saying policymakers were “prepared to do more” if necessary.The U.S. dollar came under broad selling pressure as expectations grew the Federal Reserve would keep its loose monetary policy.
Crude oil futures were largely unchanged during European morning trade on Monday, as hopes for another round of easing from the Federal Reserve were countered by growing concerns over Spain’s economic outlook.On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD104.92 a barrel during European morning trade, easing down 0.01%.The June contract traded in a tight range between USD105.04, the daily high and the highest since April 17, and a session low of USD104.67 a barrel.Oil prices remained supported as the U.S. dollar weakened broadly after Friday’s disappointing data on first-quarter U.S. economic growth fuelled expectations for another round of easing from the Federal Reserve.The Commerce Department said the U.S. economy expanded at a rate of 2.2% in the three months to March, below expectations for a 2.5% increase and slower than the 3.0% pace in the prior three months.Despite improving consumer demand, reduced government spending and business investment cut into growth.The disappointing data fuelled expectations that the Fed will introduce further monetary easing measures to boost growth in the world’s largest economy after Fed chief Ben Bernanke left open the possibility following the bank’s monetary policy meeting last week, saying policymakers were “prepared to do more” if necessary.The U.S. dollar came under broad selling pressure as expectations grew the Federal Reserve would keep its loose monetary policy.
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