Crude futures retreat on US economic woes

Global crude futures traded lower in European morning trading Tuesday,
reversing the uptrend of the previous day as continued weakness in US equity
markets triggered fresh selloffs.
    After bullish geopolitical news supported the market Monday, the
sentiment was bearish Tuesday on US economic woes, which could ultimately
dampen oil demand, sources said.
    At 11:35 GMT, March crude futures on NYMEX were trading 92 cents lower at
$89.10/barrel and Brent on ICE was at $89.59/barrel, for a loss of 88 cents.
    While analysts believe that there is an occasional need to insert a
geopolitical risk premium into the market, they continue to view economic woes
as the main price driver in the complex.
    "Despite the higher close, WTI is still struggling to maintain a positive
momentum," Olivier Jakob, analyst at Petromatrix, said in a report.
    Meanwhile, although the market will take direction from the US Energy
Information Administration's stocks data due out tomorrow, which market
sources say is likely to remain on the bearish side, its influence is expected
to be relatively muted.
    "Stats are bearish and as we're coming out of winter," said a
London-based broker. "We see them as being less significant."
    February gasoil on ICE traded $8.25 lower at $791.50/mt while NYMEX March
heating oil traded 1.97 cents lower at $2.4636/gallon.
    Front-month RBOB traded 2.42 cents lower at $2.2875/gal.