April crude oil prices traded lower during the overnight and early morning, as they consolidated yesterday's surge. It seemed that media reports of an explosion to a Saudi oil pipeline fueled the spike higher, but it was later denied by Saudi officials. The macro economic tone this morning appears limiting to risk appetites, with a rally in the US dollar and weakness in global equity markets. Some traders indicated that yesterday's comments from the US Energy Secretary noted an ample amount of global oil capacity to compensate for shortfall in Iranian exports, but that did little to stall yesterday's move higher. Crude oil supply concerns have made the market very sensitive to news flow suggesting any potential disruption in crude supplies.
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