Page added on May 11, 2010
Oil prices fell in trading on Tuesday in Asia as in currency markets, the euro weakened against the dollar with US Light crude oil futures for June trading at $76.41 a barrel at 0558 GMT on Tuesday.
Many crude oil traders are more keenly watching the euro zone crisis developments, amid expectations of continued euro v dollar volatility, said Koichi Murakami, a trader with broker Daiichi Shohin in Tokyo.
“The market does not think all the euro zone’s problems are over. With a bit more negative news, like another downgrade of a government bond, crude prices may test further lows,” Murakami said.
“The market sentiment is far from bright” despite Monday’s rebound, given that June Nymex crude “ended in floor trade far lower than the high of above $78 in electronic trading” marked earlier on the day, said Ken Hasegawa, an analyst with Newedge Japan.