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Crude oil futures tumbled in the Asia trading hours Monday with the mixed movement in the equities and stronger dollar resulting in negative movement the commodity. Low volumes may be witnessed today as many regional markets, including those in Shanghai, Hong Kong and Seoul, were closed for Lunar New Year holidays.

The muted start in Asia came amid lingering European uncertainty, after Greece failed to reach a debt-restructuring agreement over the weekend with holders of its sovereign bonds. Greece needs to seal a deal with its private bond-holders before it can receive more financial assistance and avoid defaulting on a bond repayment due in March.

NYMEX light sweet oil futures are trading down 30 cents at $ 98.03 per barrel. It fell by nearly $2 a barrel Friday, pressured by concerns over Greece's debt crisis, Chinese manufacturing and weak U.S. gasoline demand. Prices lost 0.2% lower for the week. With traders downplaying Iran's threat to global oil shipments, the combination of these issues sent prices lower for the week.

Preliminary results Friday from HSBC's China manufacturing survey showed little improvement in January, with weakness in output and new orders suggesting a deepening slowdown ahead. The news sparked worries over weakness in global oil demand. Talks over a restructuring of Greek sovereign debt by private-sector creditors failed to reach resolution over the weekend. Greece needs to seal a deal with its private bond-holders before it can receive more financial assistance and avoid defaulting on a bond repayment due in March.

A firmer dollar also added downward pressure to crude prices. The dollar index, which measures the greenback against a basket of six other currencies, rose to 80.337, from 80.148 in North American trade late Friday.

MCX oil futures may start today's session below Rs 4980 with support around Rs 4900 levels.

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Stock Tips Expert