Futures on crude oil declined on Monday amid concerns over increasingly sluggish US economy which can lead to lowering demand for energy resources.
By the end of NYMEX trades July futures on low-sulfur oil dropped by 0.34% (USD 1.21) down to USD 99.01 per barrel which is the lowest closing reading since May 23.
Demonstrations in Syria calling for resignation of Bashar Asad in combination with disappointing data on the US labour market last week pushed futures down on Monday and spurred the issue of energy resources prospects.
Market participants note that oil market has been rather weak from the technical point of view and large funds started to sell out their contracts at any growth of rates.
Investors will thoroughly monitor OPEC meeting which is to take place in Vienna. The major issue to be discussed is intensifying oil extraction.
Many analysts expect the cartel to either save or slightly increase the oil extraction quotas. In this case such decisions are unlikely to considerably influence oil futures. On the other hand, the current conflict between Saudi Arabia and Iran may result in Iran voting against increased quota for Saudi Arabia which may well push the prices up.
OPEC will also dwell upon reducing production in Libya, the geopolitical situation in the Middle East etc.
The tension in the region was still on increase at last weekend. In Yemen thousands of people went out to streets to celebrate a forced departure of President Ali Abdullah Saleh to Saudi Arabia for medication. In Syria demonstrations continued after governmental forces opened fire on protesters which took several lives.
