SINGAPORE: Crude turned mixed in Asia on Tuesday as traders searched for bargains while US corporate earnings disappointed, analysts said.
New York's main contract, light sweet crude for delivery in December, added 18 cents to $88.83 in the afternoon while Brent North Sea crude for December delivery fell 18 cents to $109.26.
Crude markets were weighed by worries over the US economy, with traders "bracing themselves for a continuation of last week's slew of weak earnings from the likes of Google, McDonald's and IBM", IG Markets said in a report.
"There is still a bearish mood over the corporate earnings season with so many misses among blue-chip US stocks," it added.
Caterpillar, the world's biggest maker of construction and mining equipment, late Monday also cut its sales outlook, weighing down Wall Street and crude markets.
The company, considered a bellwether of the global economy, cut its profit and sales forecast for full-year 2012, suggesting a sharp slowdown in the fourth quarter.
Nevertheless, IG Markets Singapore strategist Justin Harper said some traders were snapping up cheap crude following overnight losses.
"I think we are seeing bargain-hunters come back into the market after a sharp sell-off," he told AFP.
Traders were also looking anxiously at Europe after Germany's central bank warned the German economy will see a sharp slowdown in growth or may even contract at the end of the year as the eurozone crisis bites.
Comments
Comments are closed for this article.