Crude-oil futures have pared some of the day's losses in Tuesday's afternoon Asian trade, tracking some Asian shares stabilizing after a massive morning selloff.
Crude oil markets are far from calm though, with most traders awaiting announcements from a U.S. Federal Open Market Committee meeting later in the day, analysts said.
Market participants are hopeful that the Federal Reserve will move to a third round of quantative easing.
"Any announcement that the Fed is instituting QE3 or a similar program would be bullish for oil prices," Peter Beutel, president of Cameron Hanover, said in a note to subscribers. "The lack of anything new would lead to more selling," Beutel said.
On the New York Mercantile Exchange, light, sweet crude futures for September delivery traded at $78.78 a barrel at 0458 GMT, down $2.53 in the Globex electronic session. September Brent crude on London's ICE Futures exchange fell $1.83 to $101.91 a barrel.
The markets will also seek direction from monthly global demand outlooks that will be released by the U.S. Energy Information Administration and OPEC later in the day.
Traders are increasingly worried about the emergence of a financial crisis similar to 2008, when crude fell to around $30 a barrel, said Koichiro Kamei, an analyst with Market Strategy Institute. "But I don't think it will really happen. There is still substantial demand from emerging markets," Kamei said.
"What you're seeing is not fundamentally driven, it's sentiment-driven," Mark Pervan, head of commodities research at ANZ in Melbourne, said.
"The Dow Jones is off and oil markets are going to track that very closely. The selling you're seeing is from investment funds, which are particularly sensitive toward energy markets," he said.
On the Shanghai Futures Exchange, the benchmark December fuel oil contract last traded at CNY4,849/ton, down CNY113, or around 2.3%.
Nymex reformulated gasoline blendstock for September--the benchmark gasoline contract--fell 221 points to $2.6695 a gallon, while September heating oil traded at $2.7837, 180 points lower.
ICE gasoil for August changed hands at $875.75 a metric ton, down $24.50 from Monday's settlement.
On the Shanghai Futures Exchange, the benchmark December fuel oil contract last traded at CNY4,869/ton, down CNY93, or around 1.9%.
Crude oil markets are far from calm though, with most traders awaiting announcements from a U.S. Federal Open Market Committee meeting later in the day, analysts said.
Market participants are hopeful that the Federal Reserve will move to a third round of quantative easing.
"Any announcement that the Fed is instituting QE3 or a similar program would be bullish for oil prices," Peter Beutel, president of Cameron Hanover, said in a note to subscribers. "The lack of anything new would lead to more selling," Beutel said.
On the New York Mercantile Exchange, light, sweet crude futures for September delivery traded at $78.78 a barrel at 0458 GMT, down $2.53 in the Globex electronic session. September Brent crude on London's ICE Futures exchange fell $1.83 to $101.91 a barrel.
The markets will also seek direction from monthly global demand outlooks that will be released by the U.S. Energy Information Administration and OPEC later in the day.
Traders are increasingly worried about the emergence of a financial crisis similar to 2008, when crude fell to around $30 a barrel, said Koichiro Kamei, an analyst with Market Strategy Institute. "But I don't think it will really happen. There is still substantial demand from emerging markets," Kamei said.
"The Dow Jones is off and oil markets are going to track that very closely. The selling you're seeing is from investment funds, which are particularly sensitive toward energy markets," he said.
On the Shanghai Futures Exchange, the benchmark December fuel oil contract last traded at CNY4,849/ton, down CNY113, or around 2.3%.
Nymex reformulated gasoline blendstock for September--the benchmark gasoline contract--fell 221 points to $2.6695 a gallon, while September heating oil traded at $2.7837, 180 points lower.
ICE gasoil for August changed hands at $875.75 a metric ton, down $24.50 from Monday's settlement.
On the Shanghai Futures Exchange, the benchmark December fuel oil contract last traded at CNY4,869/ton, down CNY93, or around 1.9%.
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