Oil prices hovered below $104 a barrel Tuesday in Asia as traders eyed gains by Libyan rebels seeking to topple Moammar Gadhafi and restart crude exports from the OPEC nation.
Benchmark crude for May delivery was down 19 cents to $103.79 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract dropped $1.42 on Monday to settle at $103.98.
In London, Brent crude was down 24 cents at $114.34 a barrel on the ICE futures exchange.
Oil prices have come off near two-year highs above $106 last week after coalition bombing pushed back Gadhafi forces and allowed rebels to retake key oil ports. Fighting is expected to become more fierce as rebels approach Gadhafi stronghold Tripoli, the capital.
Traders are also mulling whether the US economic recovery is strengthening. The Conference Board index of consumer confidence will be released later Tuesday, and analysts will be looking for signs that buying sentiment has improved in tandem with the falling unemployment rate.
“If we see a disappointing consumer confidence number and a higher dollar there is a very real chance” of oil falling to $100
or below before the end of the week, energy consultant The Schork Group said.
The US dollar has weakened so far this year, making oil cheaper for investors with other currencies.
In other Nymex trading for April contracts, heating oil fell 1.1 cents at $3.01 a gallon and gasoline fell 0.7 cent at $3.02 a gallon. Natural gas dropped 2.5 cents to $4.35 per 1,000 cubic feet. - Sapa-AP