Brent crude oil prices open trading in Asia weaker, heading back near the $73 mark on Tuesday as investors show uncertainty over the strength of the global economy, particularly the US.
In London, Brent crude oil futures for October 2010 delivery was trading at $73.14, 07.30 GMT on the ICE Futures Exchange after US stock markets finished yesterday’s trading session lower.
“The US housing market is looking weak as well as the unemployment picture. Seasonally, Labor Day weekend is coming in two weeks which signals the end of the summer driving season, so consumption could take a hit in the coming month.” said Mike Sander of Sander Capital Advisors.
Meanwhile, data from the US Department of Energy showed US oil stockpiles at their highest level in nearly 27 years and this week’s EIA report, due Wednesday, is expected to show weekly crude stocks declined by 400,000 barrels.
Many investors and oil traders are sitting on the sidelines ahead of key US housing and GDP data out later this week.