Metals News
Oil Edges Down after Volatility
data analysis
10:42AM
May 16,2012
Source:SMM

NEW YORK, May 15 (Xinhua) -- U.S. crude oil price edged down after volatility on Tuesday as investors weighed euro zone's better-than-expected GDP report against Greece's failing efforts to form a new government and U.S. tepid data.

The news that euro zone avoided double-dip recession became a big relief for the nervous markets. The European Union's statistics office Eurostat said on Tuesday that euro zone's gross domestic product (GDP) remained unchanged in the first quarter, better than economists' forecast of a 0.2-percent contraction, and making the region skip from another round of recession.

Germany, the largest economy in the bloc, registered a 0.5- percent growth in the first quarter in seasonally adjusted terms, five times of the expected growth rate, as exports to emerging markets pulled the economy from a contraction of 0.2 percent in the fourth quarter 2011. Germany's recovery helped boosted market sentiment.

But Greece failed to establish a coalition government, nine days after the parliamentary elections. Investors feared it would force another round of elections, raising concerns about Athen's future and euro zone's economic outlook.

On the U.S. economic front, retail sales slowed sharply down in April, growing only 0.1 percent compared to growing 0.7 percent in March.

Besides, the dollar index rose for the record 12th straight trading session. A stronger dollar pulled down the greenback- denominated oil.

On the supplies front, a bomb explosion hit a main oil pipeline in east Syria, putting the country's supplies in threat. But Saudi Arabia's pledges of more output still weighed.

Light, sweet crude for June delivery slipped 80 cents, or 0.84 percent to settle at 93.98 dollars a barrel on the New York Mercantile Exchange. But in London, Brent crude for June delivery edged up and last traded around 112 dollars a barrel.
 

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