Crude oil futures in Asia saw a decline on Tuesday amid the appreciating values of the U.S. dollar and an overall weakening in Asian equities.
The dip came after a strong rally last week when the futures saw a major up tick due to depreciating dollar and rising concerns about global economic recovery. Light, crude futures for delivery in November traded at $81.41 a barrel in the New York Mercantile Exchange, showing a decline of $0.80 in the Globex electronic session. Falls were also visible on London's ICE Futures exchange as November Brent crude futures dipped $0.64 to $83.08 a barrel.
Asian markets showed mixed trends Tuesday with most showing reduced activity mainly due to appreciating values of the yen; Nikkei dropped 1.6% points amid rising concerns about the Japanese economy.
The dollar surged against the euro as investors waited patiently for the minutes from the U.S. Federal Reserve meeting later Tuesday as they are expecting hints of further quantitative easing. There were also speculations about the news coming from the Organization of Petroleum Exporting Countries Thursday regarding production quotas though some reports suggest the apex body will keep its quotas unchanged.
Oil prices could surge again as the global economy situation remains murky and the unloading of oil tankers remains blocked at Fos Lavera port in southern France due to workers strike. The third-largest port in the world has yet to unload 20 crude tankers, 17 oil product tankers and 12 natural gas tankers, among others, as negotiations have failed to yield an amicable solution.
