Futures prices of crude oil extended declines on the New York Mercantile Exchange, falling 1.7% during open outcry to $106.77 per barrel.
The drop follows Monday’s slight sell off in contracts for April delivery of 1.1%.
For all the worry that has expounded in the U.S. over the steadily rising prices, a series of Wall Street analysts have issued client notes on how a stronger economy with a brighter jobs picture has muted the crude price impact.
“At the moment, we believe the economy can withstand the recent increase in oil prices, provided that they do not increase substantially further and remain at elevated levels on a longer-term basis,” Deutsche Bank Chief Economist Joseph LaVorgna commented last week. “In our view, it is both the magnitude and persistence of oil price changes that matter. Importantly, there is some offset coming from lower natural gas prices and reduced utilities consumption, owing to an unseasonably warm winter.”
Shares in energy refiners and producers were largely mixed on the day. Below a summary of the key movers.
- Exxon Mobil (XOM): Down 0.4 per cent to $86.90
- Chevron Corp (CVX): Up 0.1 per cent to $109.76
- BP plc (BP): Up 0.6 per cent to $47.83
- Marathon Oil (MRO): Down 0.2 per cent to $34.97