Crude traded below $91 per barrel today following China's Friday decision to raise banks' reserve requirements to restrict lending and contain inflationary pressures, thereby sparking fears of possibly weaker demand on oil in the future, while trading is expected to remain tight and volatile today with the US Martin Luther King holiday.
Crude today hovers around $91 per barrel recording its highest around $91.64 and lowest around $90.81, while it currently trading around $90.98 per barrel.
The largest energy consumer in the world, China, decided on Friday to increase reserve requirements for banks for the seventh time in a year as it attempts to curb lending and maintain inflation rates steady. Meanwhile, China’s economic growth in result could further slow effecting demand on imported oil that has recently recorded a two-year high, alongside other fuels.
Crude last Friday traded around $91 per barrel recording its highest around $91.66 and lowest around $90.08 per barrel, closing around $91.66 per barrel. Futures fell last Friday due to weaker demand in the US.
Moreover, trading today is expected to be subdued due to a Federal holiday in the US leaving markets sluggish, especially with low fundamental volume from Europe as investors focus on European Finance Chiefs that commence their meeting today in an attempt to extend the measures to contain the debt crisis.
As for NYMEX as of 04:01 EST; motor gasoline fell $0.46 recording $248.320 per gallon; heating is trading around $262.920 per gallon declining $0.60; whereas natural gasoline shed $0.07 to record $4.477. In London, Brent futures slid $0.53 to record $97.860.