April crude oil prices traded higher overnight but fell short of yesterday's session high. The outside market tone turned weaker in response to disappointing economic data and mounting concerns whether Greece can execute new reforms and austerity measures has tempered the outside market tone. February Chinese Purchasing Managers' data showed the fourth straight month of contraction and European service sector data unexpectedly shrank in January. Meanwhile, it appears that the crude oil market drafts a level of support from supply disruptions concerns out of the Middle East. While estimates for OPEC spare capacity are in the range of 2.8 million barrels per day and offset Iran's 2.2 million barrels per day of production, ideas of improving global oil demand and reduced North Sea output might have fostered the fear premium in the market. So far this morning, April crude oil prices have shrugged off disappointment by the IAEA and their talks in Tehran and over Iran's nuclear program.
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