(RTTNews) - Crude oil was trading firm around $85 Monday morning after soft inflation data out of China raised speculation of further monetary easing measures in the commodity hungry nation.
China's inflation fell to a 29-month low in June, with the consumer prices rising 2.2 percent year-over-year, down from 3 percent reported in May.
Light Sweet Crude Oil (WTI) futures for August delivery, added $0.57 to $85.02 a barrel. Last week, oil ended lower despite a sharp fall in U.S. crude stockpiles for the week ended June 29 as imports fell. Investors were unimpressed with the rate cut by the European Central Bank, while the Bank of England revealed additional stimulus measures.
This morning, the U.S. dollar was hovering near a two-year high versus the euro and around a monthly high against sterling. The buck was trading mixed versus the yen and the Swiss franc.
In economic news from the euro zone, Germany's exports rose more than expected in May, the latest figures from the Federal Statistical Office showed. Exports grew 3.9 percent month-on-month in May, following a 1.7 percent decline in April. Economists expected only a 0.2 percent rise in shipments.
During this week, traders focus will be on the weekly jobless claims data, the Reuters and the University of Michigan's consumer sentiment survey, the Commerce Department's trade balance report for May and the minutes of the June FOMC meeting.
Also, focus will be on the crude oil inventories data from the API, due out Tuesday after the market hours, and the EIA due out the subsequent day.
