April crude oil prices traded lower during the initial morning hours, weighed down by a new three day low in Brent crude oil prices. Some traders suggested that Brent crude oil could be experiencing an added level of weakness from reports yesterday indicating that TransCanada was moving forward in constructing the keystone XL pipeline to the Gulf coast. Despite the early weakness in crude oil, the outside market tone is on a higher track, with gains in global equity and commodity markets, as well as weakness in the US dollar. It is possible that some of the early weakness in the crude oil market comes on concerns that higher prices could ultimately trim demand. That bias was highlighted by the IMF that warned of higher energy prices as a growing problem for the global economy.
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