Oil Prices Continue to Drop in Asian Trading

The sell-off in the commodities market has kept on pulling current oil prices lower, with Brent dropping below the $100 per barrel level during the most recent Asian trading, while the prices of the U.S. benchmark fell to their cheapest rate since December.

On the NYMEX, the crude futures prices of the U.S. benchmark for May delivery traded lower by $2.65 cents to $88.06 per barrel. On the ICE Futures Exchange, Brent for June moved 79 cents down to $99.84 per barrel.

The crude oil price per barrel sharply fell during early trading in Asia, extending declines after ending the recent trading session at their lowest level this year as sentiment became unpleasant on weak data from the economies of China and the U.S.

According to Goldman Sachs, it finished its long-term trading recommendation for Brent, noting rising risk in the short term.

While weak European demand is weighing on the prices of Brent crude, the price of oil on the NYMEX is facing pressure from record level supplies at the Cushing, Oklahoma crude transport hub.

The data that traders will be observing next will be the upcoming figures from the Energy Information Administration and the American Petroleum Institute. Analysts polled by Dow Jones Newswires anticipate crude oil supplies to have added 800,000 barrels during the April 12 week.

With the spot prices of Brent crude ending lower than the $100 per barrel limit for the first time since July of last year, the market was still able to fall further.

By: Chris Termeer