By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Crude futures pared losses Monday and even ventured briefly into positive territory, as upbeat reports on U.S. manufacturing and construction spending spurred some hopes for oil demand.
The data offset some of the worries about Greece and the euro-zone debt crisis, but traders remained concerned about the region as euro-zone ministers reportedly are not making a decision about Greece’s bailout payment just yet.
Oil for November delivery CL1X -1.55% dropped 49 cents, or 0.5%, at $78.77 a barrel on the New York Mercantile Exchange. It had earlier traded as high as $79.64 a barrel and as low as $76.85 a barrel.
Crude ended September down 11%, and the quarter off more than that as markets were riddled with doubts the global economy would speed up and lift oil demand with it.
Prices got a reprieve, however, as a gauge of manufacturing activity in the United States. came in better than expected. The Institute for Supply Management’s manufacturing index rose to 51.6 in September, from a 50.6 reading in August.
Economists polled by MarketWatch had anticipated an unchanged reading.
“To see any number coming in better than expected is going to provide an opportunity for bulls to come back to the markets,” said Hamza Khan, an analyst with th Schork Group in Philadelphia.
Also Monday, U.S. construction spending rose 1.4% in August, the Commerce Department reported. Economists surveyed by MarketWatch had expected a decline in construction spending.
The week is thick with macroeconomic data, and the deluge of key reports concludes with official word on U.S. unemployment data Friday.
The latest jitters from Europe, meanwhile, started in part after Greece acknowledged it would miss its deficit targets this year. Read about Europe stocks dropping on Greek deficit fears.
Earlier Monday, Markit Economics released data showing the euro-zone manufacturing sector contracted for the second straight month. The final Markit euro-zone manufacturing purchasing managers’ index fell to 48.5 in September form 49% in August.
Separately, oil officials in Saudi Arabia and Iran said they see the oil market as balanced.
Saudi Arabia’s finance minister was reported as saying he sees increased oil revenues covering higher government spending as set by the kingdom’s rulers earlier this year to counteract social unrest.
