Mumbai, 31 Jan (Commoditiescontrol): Crude oil prices edged lower in early Asian trading on Wednesday on continued bearish fundamentals, following gains in the previous session amid an escalating conflict in the Middle East.
The March Brent crude futures, which expires today, fell 37 cents to $82.50 a barrel. The more actively-traded April contract fell 24 cents to $82.26 a barrel. U.S. West Texas Intermediate crude ticked down 18 cents to $77.64.
Stand-off between the U.S. and Iran over recent drone attack on formers Jordanian post has caused escalation in tension.
Iran-aligned Iraqi armed group Kataib Hezbollah – which the U.S. Pentagon had suggested could be behind the attacks, though no final assessment had been made – announced on Tuesday the suspension of all its military operations against U.S. troops in the region.
In the Israel-Palestinian conflict, Hamas said on Tuesday it had received and was studying a ceasefire proposal. It appeared to be the most serious peace initiative since the war's first and only brief ceasefire which fell apart in November.
But the market was concerned that a ceasefire in Gaza would not necessarily put a halt to attacks by Iran-backed Houthis on ships in the Red Sea, which have disrupted global shipping and oil trading.
Bearish factors include a deepening crisis in China's real estate sector following the liquidation of property company China Evergrande Group, which has raised concerns about demand from the world's largest crude importer. Markets are also awaiting the release of China's PMI data on Wednesday, which will likely show a contraction for a fouth straight month.
(By Commoditiescontrol Bureau: 09820130172)
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