CHENNAI: Brent crude held below $103 per barrel on Tuesday amid worries about the global economy and ample supply, while some traders said the onset of the summer driving season in top oil consumer the United States may support prices.
A contraction in Chinese factory activity and a buildup in US gasoline inventories have been dragging on oil prices, with analysts saying Brent could drop further.
"Oil demand from China could be depressed as China's PMI contracted for the first time in seven months and we are unlikely to see any aggressive stimulus from policymakers in the short-term," said Chen Hoay Lee, an investment analyst at Phillip Futures in Singapore.
"We continue to be bearish, with Brent likely to find support at the 100 level."
Brent was down 8 cents at $102.54 per barrel at 0457 GMT, while US crude slipped 59 cents to $93.56.
Oil markets are also waiting for direction as traders in Europe and the US return after a holiday weekend.
Comments
Comments are closed for this article.