RTTN: Crude Little Changed; China Data, ECB in Focus
LONDON--Crude-oil futures were little changed Monday in thin trade, with weak manufacturing activity data from China counterbalanced by persistent hopes that central banks eventually choose to boost economic growth via monetary measures.
"With all the recent talk which has proved so supportive of risk, we need to now see some policy action to help underpin these gains," Sucden Financial said in a note.
At 1117 GMT, the front-month October Brent contract on London's ICE futures exchange was 13 cents, or 0.1%, higher at $114.70 per barrel. The front-month October contract on the New York Mercantile Exchange was trading down 12 cents, or 0.1%, at $96.35 per barrel.
Trading volumes are thin as U.S. markets are closed for the Labor Day holiday, and there will be no settlement for Nymex crude Monday.
Pressure on prices came from China, the world's second-largest oil consumer, after HSBC's China Manufacturing Purchasing Managers' Index for August showed a fall to the lowest level since March 2009, indicating further slowing of the country's manufacturing activity.
A similar indicator for the euro-zone showed that manufacturing activity there continues to contract.
After market participants were focusing for several days on the U.S. Federal Reserve's views of the health of the U.S. economy and its growth prospects, attention is now switching back to Europe, analysts said.
September looks set to be a key month for crude prices and risk generally, with all eyes on European Central Bank monetary policy announcements Thursday, said Sucden Financial.
Additionally, "macro headline risk for crude lies in the Troika's review of Greece and a string of meetings between European leaders such as Monti and Hollande in Paris, Van Rompuy and Merkel in Berlin, Stournas and Schaeuble in Berlin, all tomorrow," it said.
Crude futures are unlikely to show sustained gains past August highs, said Andrey Kryuchenkov, chief commodity strategist at VTB Capital.
"The market will likely swing back and forth in wider ranges ahead of the ECB's monthly policy statement," he said.
At 1117 GMT, the ICE's gasoil contract for September delivery was down $1.50, or 0.2%, at $993.50 per metric ton, while Nymex gasoline for October delivery was 102 points, or 0.3%, lower at $2.9626 per gallon.
Write to Konstantin Rozhnov at konstantin.rozhnov@dowjones.com
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