Brent crude dropped today amid continuing concerns regarding the eurozone, but were supported slightly after the US released strong data, improving the prospect for demand from the world’s biggest oil consumer.
Brent crude slipped by 41 cents to $108.95 a barrel, while US oil dropped by 36 cents to $95.98, reported Reuters.
In February, orders for durable goods manufactured in the US jumped, while home prices recorded their biggest year-on-year gain in six-and-a-half years in January, indicating that the American economy regained momentum in the beginning of the first quarter.
The US benchmark oil contract received support from the improving US economy and rise in pipeline flows from the Midwest.
Brent, however, came under pressure from the rise in supplies from the North Sea, while the strict conditions on a rescue plan for Cyprus, which underline concerns about eurozone’s financial stability, restricted prices.
On Tuesday, some other data showed that consumer confidence in the US has dropped considerably on apprehensions about the impact of a more strict fiscal policy, mainly $85bn in government budget cuts.
The American Petroleum Institute has released its data, which showed that US crude oil stocks increased 3.7 million barrels last week, while inventories of gasoline and diesel both dropped by more than predicted.
Investors will keep a close watch on the government data from the US Energy Information Administration (EIA), due on Wednesday.
Image: Strong data from the US has improved outlook for demand from the world’s biggest oil consumer. Photo courtesy of freedigitalphotos / hin255.