Light oil trading steady around $72, eyes on US dollar

US Light oil prices are trading steady around the $72 a barrel mark on Tuesday in Asia as investors remained uncertain about the strength of global economic growth and in turn, global demand for crude oil.

NYMEX Light crude oil futures for March delivery was down slightly at $71.73 a barrel at midday Singapore time in electronic trading on the NYMEX, while in London, Brent crude oil futures are trading slightly down 18 cents at $70 on the ICE futures exchange.

“Geopolitical tension, ongoing financial risks from Greece, Portugal and Spain and further liquidation of speculative long positions will continue to weigh on the oil price,” ANZ Banking Group said in a report.

World crude oil demand looks to remains sluggish despite support from cold weather in the US northeast. Analysts expect US crude stocks to grow 2 million barrels, according to a survey released Monday by Platts, the energy information arm of McGraw-Hill Cos.

As with the base metals, Crude oil prices opened higher overnight before coming back under a bit of pressure heading into the afternoon. Short term the US dollar and equities will remain key, with the market waiting to see how the US markets react to Friday afternoon’s recovery in the equity markets, particularly after an inconclusive G7 meeting over the weekend.

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