Crude oil futures tumbled below $ 96 a barrel in the Asia electronic session today as the US dollar gained ground ahead of the release of monthly U.S. retail-sales data.
Crude oil for June delivery declined 72 cents, or 0.8%, to $95.32 a barrel during Asian hours on the New York Mercantile Exchange. The contract on Friday fell 35 cents, or 0.4%, as the U.S. dollar rose, though oil recovered from levels below $94 a barrel to end back above $96.
The dollar was extending gains against major rivals Monday, with Japan’s currency falling below the 102-yen level and the Australian dollar trading below parity. The ICE dollar index , which measures the U.S. dollar’s moves against six other major currencies, rose to 83.268, up from 83.132 late Friday in North America.
The moves came as the U.S. Federal Reserve had reportedly sketched out a plan for winding down its stimulus program of buying $85 billion in bonds each month.
Oil prices and the dollar may react later Monday to the U.S. Commerce Department’s report on retail sales for April, as the report could give signs about the outlook for oil demand.
On Friday, the Organization of the Petroleum Exporting Countries said demand grew less than expected in the first quarter of 2013, but it left its overall forecast unchanged at a rise of 800,000 barrels a day. OPEC, in a monthly report ahead of its May 31 summit, still expects consumption will increase in the second half of this year.
MCX May crude may open today’s session near Rs 5200 levels with support around Rs 5170-40 levels and a resistance near Rs 5240 levels.
In the week ahead, oil traders will be focusing on a flurry of U.S. economic reports, including data on retail sales, building permits, jobless claims as well as a closely watched report on consumer sentiment.
Investors will also be awaiting preliminary data from the euro zone and Japan on first quarter economic growth, as well as Chinese industrial production figures.
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