Oil extended two weeks of decline in New York on speculation that fuel demand may falter as Europe struggles to tame its debt crisis and China’s economy slows.
Futures slid as much as 0.6 percent. Spain may reignite the European debt crisis, Italy’s Prime Minister Mario Monti warned as euro-area ministers prepare a deal to strengthen the region’s financial firewall.
Oil for May delivery slipped as much as 68 cents to $106.19 a barrel in electronic trading on the New York Mercantile Exchange and was at $106.47 at 10:44 a.m. London time. It rose $1.52 to $106.87 on March 23, the highest close since March 21. Prices are up 7.7 percent so far this year after advancing 25 percent in the last quarter of 2011.
Brent for May settlement was at $125.08 a barrel, down 5 cents, on the London-based ICE Futures Europe exchange. The European benchmark contract’s premium to New York-traded West Texas Intermediate was at $18.61.
WTI Oil is currently supported at $105 ( 200 SMA on 4 Hourly timeframe ) followed by previous low at $ 103.77. Alternatively first resistance on the upside is located at $ 108.41 followed by $109.91.