Crude for June delivery dropped 94 cents to $101.61 a barrel in electronic trading on the New York Mercantile Exchange.
The losses came after CME Group said it will raise margin requirements for a wide variety of crude-oil contracts.
Maintenance margins for the benchmark West Texas Intermediate light sweet crude-oil futures contract will increase
<b> - from $5,000 to $6,250, effective from the close of business Tuesday.</b>
This is CMEâs third increase in oil maintenance margins this year.
Crude oil for June delivery CLM11 -0.85% ended the day up $5.37 at $102.55 a barrel. Oil futures fell sharply in tandem with other commodities last week, amid concerns about the trajectory of global growth, and after margin requirements were lifted for silver trading.
However, a strong reading for U.S. jobs on Friday alleviated some concerns about economic growth going into the new week.
âCrudeâs open interest has soared over the past week, meaning that there were a host of new shorts coming into the market, many of whom presumably had to cover on Monday after the market refused to break down,â said analysts at MF Global.
The analysts said they believed that there could be large daily moves for the oil price in the short term, adding that âthe intense volatility over the past week has been palpable.â
The losses came after CME Group said it will raise margin requirements for a wide variety of crude-oil contracts.
Maintenance margins for the benchmark West Texas Intermediate light sweet crude-oil futures contract will increase
<b> - from $5,000 to $6,250, effective from the close of business Tuesday.</b>
This is CMEâs third increase in oil maintenance margins this year.
Crude oil for June delivery CLM11 -0.85% ended the day up $5.37 at $102.55 a barrel. Oil futures fell sharply in tandem with other commodities last week, amid concerns about the trajectory of global growth, and after margin requirements were lifted for silver trading.
However, a strong reading for U.S. jobs on Friday alleviated some concerns about economic growth going into the new week.
âCrudeâs open interest has soared over the past week, meaning that there were a host of new shorts coming into the market, many of whom presumably had to cover on Monday after the market refused to break down,â said analysts at MF Global.
The analysts said they believed that there could be large daily moves for the oil price in the short term, adding that âthe intense volatility over the past week has been palpable.â
