OIL / Plugs on gross profit, down sharply in New York
resumption of the standby
New York (awp / afp) - Oil prices fell Tuesday in New York on profit taking, as investors questioned the impact of soaring prices on demand.
On the New York Mercantile Exchange (Nymex), a barrel of light sweet crude for June delivery ended at 111.05 dollars, down 2.47 dollars compared to the previous day.
In London, the IntercontinentalExchange, a barrel of Brent North Sea with identical maturity dropped 2.67 dollars to 122.45 dollars.
This relapse was triggered by "any new" special, according to Tom Bentz of BNP Paribas.
"The market was simply climbed too high," he said.
The courses, which have soared by about 25% since the beginning of the year reached 114.83 dollars Monday, their highest level since September 2008 on the New York market.
"The market fears that rising fuel prices and food does not result in a loss of purchasing power for consumers and therefore a fall in consumption and a slowdown in economic growth," explained Andy Lipow of Lipow Oil Associates.
Indicators published Sunday and Monday showed a slowdown in industrial activity in the United States and China in April.
Market participants expect oil also published Wednesday weekly statistics on the evolution of oil stocks in the United States. The numbers of application will be monitored closely by the market nervous about the current level of prices.
Adam Sieminski, Deutsche Bank, the oil market has also continued to digest the news of the death of Osama bin Laden, killed in the night from Sunday to Monday at a U.S. military operation in Pakistan .
"Many brokers believe that this will reduce the geopolitical risk in the market, even if it's hard to believe," he said.
Prices had briefly dipped to four dollars in the night from Sunday to Monday's announcement of the death of Osama bin Laden. These losses were, however, quickly filled while analysts stressed the risk of retaliation.
Moreover, "the market realized that Bin Laden had less influence than before," said Phil Flynn of PFG Best. "At the same time, the oil market is focused on current threats, that is to say the war in Libya, the Arab spring, and (falling) dollar."
The weaker dollar pushes investors into commodities, a way to protect their capital from loss of value. He recovered slightly on Tuesday, which put pressure on prices.
Still on the financial front, the oil market was also affected by a decline in market indices in New York.
"The next major trend (oil prices) is likely to depend on a major geopolitical event, such as Algeria, which would raise prices, or negative economic news, which would decrease," Mr. Sieminski said.
"In the absence of strong signal, positive or negative, I think prices will move between 110 and 130 do