After posting gains in the previous session, crude fell in late Asian trading as traders feared that rising oil prices would be another barrier to economic recovery in Europe and concern over Iranian threats waned.
The Baltic Dry Index fell over 4% yesterday, the index has declined by over 10% since late December.
Brent crude rose in Asian trade supported by strong manufacturing PMIs yesterday in US and Iranian threats to disrupt the flow of oil in the Straits of Hormuz. Sentiment for commodities was also buoyed by stronger than expected employment data from Germany (despite the fact that employment data tends to be a backward looking indicator).
Cotton prices rose to a 3 week high on concerns, raised by the US DOE that Indian crop estimates were too optimistic given poor weather in the main cotton producing state.