Crude Retreats From Monday Highs
Crude oil is modestly lower in early trade Tuesday, retreating from the highs set in yesterday's historic price surge.
There is still a lot of uncertainty over the wider implications of the US rescue package and exactly when it will be approved and implemented.
In addition some traders were booking profits after yesterday's steep rise.
Crude oil for November delivery declined as much as $1 to $108.37 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $108.51 a barrel at 07:54 a.m. London time. Yesterday, the contract rose $6.62 to $109.37 a barrel.
Oil demand in the United States, the world's biggest consumer, is running about 4 percent below last year, according to the latest government data.
But news of Saudi Arabia trimming its supplies, ongoing unrest in Nigeria, and higher-than-expected Chinese imports should support oil prices, analysts said.
There is still a lot of uncertainty over the wider implications of the US rescue package and exactly when it will be approved and implemented.
In addition some traders were booking profits after yesterday's steep rise.
Crude oil for November delivery declined as much as $1 to $108.37 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $108.51 a barrel at 07:54 a.m. London time. Yesterday, the contract rose $6.62 to $109.37 a barrel.
Oil demand in the United States, the world's biggest consumer, is running about 4 percent below last year, according to the latest government data.
But news of Saudi Arabia trimming its supplies, ongoing unrest in Nigeria, and higher-than-expected Chinese imports should support oil prices, analysts said.