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Crude oil futures trim losses; Cyprus bailout vote awaited

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Investing.com - Crude oil futures came off the lowest levels of the session during U.S. morning hours on Monday, as concerns that a controversial bailout deal for Cyprus could destabilize financial markets in the euro zone eased.

Oil prices struggled due to a stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.5% to trade at 82.77.

On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at USD93.20 a barrel during U.S. morning trade, down 0.3% on the day.

New York-traded oil prices fell by as much as 1.8% earlier in the session to hit a daily low of USD91.79 a barrel. Nymex oil prices rose to USD93.82 a barrel on Friday, the strongest level since February 25.

Oil prices came off the lows as market sentiment stabilized following reports that the government in Cyprus was preparing a new deposit tax proposal to lessen the impact on smaller depositors.

State media reported that a parliamentary vote on the levy was to be postponed until Tuesday.

Oil prices were deeply in the red earlier as appetite for riskier assets weakened broadly following news that a one-time tax was to be imposed on bank deposit holders as part of a EUR10 billion bailout deal for Cyprus.

In exchange for the rescue money, international creditors would impose a one-time tax of 6.75% on all bank deposits under EUR100,000 and 9.9% over that amount.

The agreement marked the first time since the onset of the euro zone debt crisis that depositors have been forced to take a haircut in return for financial aid.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery shed 0.5% to trade at USD109.20 a barrel, with the spread between the Brent and crude contracts standing at USD16.00 a barrel.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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