By Myra P. Saefong and V. Phani Kumar, MarketWatch
SAN FRANCISCO (MarketWatch) — Crude-oil futures climbed Monday, rebounding after a three-session decline of more than $6 a barrel, as investors eyed developments in Asia on news of North Korean leader Kim Jong-il’s death.
The January contract for light, sweet crude-oil futures CL2F +0.58% was up 51 cents, or 0.6%, to $94.04 a barrel on the New York Mercantile Exchange
Prices had lost nearly 7% over the past three trading sessions.
Oil prices are higher “despite the death of the North Korea president and the tumult that may lie ahead for the Asia region,” said Michael Fitzpatrick, editor in chief of the Kilduff Report. Read more about Kim Jong-il’s death.
New of the death in state-run media contributed to losses in most Asian stock markets Monday. See more on losses in Asia Markets.
China, “the globe’s second largest oil consumer is almost as concerned with turbulence on its periphery as it is in placating its domestic population,” Fitzpatrick said in the latest report.
“A military coup would have severe repercussions in the region, and this China does not want, particularly as their economy is faltering,” he said. So “the situation will bear close monitoring, but China’s desire for east Asian stability will probably lead to using the full weight of their influence in keeping their ally in check.”
Meanwhile, some strength in the U.S. dollar kept a cap on gains in crude oil and other commodities.
The dollar index DXY +0.06% , which measures the greenback’s moves against a basket of six major global currencies, was last at 80.173, but traded as high as 80.493, compared with 80.216 in North American trade late Friday. Read about currencies action.
Rounding out action in energy futures Monday, January futures for natural gas NG12F -1.34% shed 4 cents, or 1.3%, to $3.09 per million British thermal units.
January heating oil HO2F +0.91% traded at $2.83 a gallon, up 3 cents, or 1.1%, and January gasoline RB2F +0.95% tacked on 3 cents, or 1.1%, to $2.52 a gallon.
