NYMEX February crude futures opened 42 cents lower at $91.09/barrel Monday, tracking equities and in reaction to China's 25-basis point rate hike over the weekend.
In an attempt to contain inflation, the People's Bank of China raised rates by 25 basis points to 5.81%, with a result being a possible drop in oil demand.
Asia and European bourses that were opened were mixed while S&P 500 futures were down nearly 5.00 points, suggesting a weaker open to US equity indexes at the start of trading.
January heating oil opened 1.02 cents lower at $2.5306/gal and January RBOB 1.17 cents lower at $2.4309/gal.
"[W]e acknowledge the fact that the market has become technically overbought following a $10 (12%) crude price pop in less than five weeks," independent energy analyst Jim Ritterbusch said in a report. "Consequently, a near-term downward price correction during the next couple of sessions with nearby crude falling back toward the $88-89 area is a strong possibility."
--Linda Rafield
In an attempt to contain inflation, the People's Bank of China raised rates by 25 basis points to 5.81%, with a result being a possible drop in oil demand.
Asia and European bourses that were opened were mixed while S&P 500 futures were down nearly 5.00 points, suggesting a weaker open to US equity indexes at the start of trading.
January heating oil opened 1.02 cents lower at $2.5306/gal and January RBOB 1.17 cents lower at $2.4309/gal.
"[W]e acknowledge the fact that the market has become technically overbought following a $10 (12%) crude price pop in less than five weeks," independent energy analyst Jim Ritterbusch said in a report. "Consequently, a near-term downward price correction during the next couple of sessions with nearby crude falling back toward the $88-89 area is a strong possibility."
--Linda Rafield
