Oil down slightly on concern of Italy vote

(Xinhua)

08:51, February 26, 2013

NEW YORK, Feb. 25 (Xinhua) -- U.S. crude price dropped on Monday after choppy trading as investors viewed the strong performance of Italian former Prime Minister Silvio Berlusconi's coalition in the election for the Senate was a potential threat to the nation's austerity agenda.

After the sharp declines on the previous trading day, oil prices got further pressure from European side.

Exit polls showed the coalition led by former Prime Minister Berlusconi was leading in the race for the Senate, which is unfriendly to the resolution of debt crisis. Italy is the euro zone's third largest economy.

Meanwhile, six world powers and Iran resumed the talks about Teheran's disputed nuclear programs on Monday. Although the analysts remained skeptical about the results, the talks were still bearish to crude prices.

Besides, lingering concerns about Washington's automatic spending cuts due on March 1 continued to weigh on the markets. Economists warned that the massive spending cuts could lead the economy back to recession.

On the economic front, the Federal Reserve Bank of Dallas released report showed that Texas factory activity expanded in February but generally at a slower rate.

Light, sweet crude for April delivery lost 2 cents to settle at 93.11 dollars a barrel on the New York Mercantile Exchange.

But Brent crude for April delivery rose by 34 cents, or 0.3 percent to close at 114.44 dollars a barrel, as official data showed Chinese oil imports rose more than 7 percent in January from a year earlier.

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