Reports suggest that the global crude oil futures may trade in a narrow range as traders are cautious following the bleak outlook of the euro zone.
Recently, the European Central Bank President Mario Draghi informed European lawmakers that the economic outlook for euro nations remained weak at the start of 2013 but the bank expects “a gradual recovery later this year.” The ECB forecasts the 17 country-euro zone economy to contract 0.3 per cent in 2013.
The price of crude oil fell marginally following the description of the ECB President on the economic outlook.
Benchmark crude for March delivery was hovering around $95.52 per barrel on the New York Mercantile Exchange in recent sessions.
Political developments in two of the region’s struggling economies have also heightened investor concerns. In Spain, charges of bribery have put pressure on prime Minister Mariano Rajoy to resign.
In Italy, polls favor Silvio Berlusconi in elections next week. Berlusconi, a former premier, has called for billions in tax rebates and amnesty for Italians who haven’t paid them.
At the ICE Futures exchange in London, Brent crude, used to price many international varieties of oil, was trading around $117.47 a barrel.
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