FX:Crude oil edges lower as global growth concerns remain
Forexpros - Crude oil futures were lower during European morning hours on Monday, as concerns over China’s economy and worries about future oil demand prospects dampened the appeal of the commodity.
Losses were limited as investors continued to monitor rising geopolitical tensions in the Middle East, amid fears over a disruption to supplies from the region.
On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD92.02 a barrel during European morning trade, shedding 0.3%.
Earlier in the day, prices fell by as much as 1.05% to hit a session low of USD91.31 a barrel.
Official data released earlier showed that Chinese consumer prices rose 1.9% in September from the year-ago period, in line with expectations and down from 2.0% in August, while producer price inflation fell 3.6%, also in line with expectations.
The data came after a report over the weekend showed that Chinese exports grew 9.9% on the year in September, above expectations for a 5.5% gain. Imports rose 2.4% from a year earlier, in line with expectations.
Oil traders were now looking ahead to Chinese third quarter growth figures due out on October 18, to gauge whether the world second largest economy is heading towards a hard or a soft landing.
The Asian nation is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Investors were jittery as uncertainty over Spain’s position on formally requesting a bailout from its euro zone partners persisted.
Market players have been anticipating for the past month that the Spanish government would ask for a full-scale sovereign bailout.
A bailout would allow the European Central Bank to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation.
But Spain has been reluctant to do so because it may come with conditions on its budget.
European Union policymakers will hold a two-day summit in Brussels starting on October 18 to discuss ways to firewall and extinguish the debt crisis as well as Greece's steps towards fiscal recovery.
But prices remained supported as investors focused on escalating tensions between Syria and Turkey and the possibility that Iran could support Syria in such a dispute.
Tensions between Turkey and Syria have been growing since Syrian shells last week killed five people in a Turkish border village.
Growing tensions between Iran and Israel also remain in focus. There are fears that an escalation of hostilities between Israel and Iran could set off a conflict across the region and send oil prices skyrocketing.
Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2011.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery eased down 0.15% to trade at USD113.41 a barrel, with the spread between the Brent and crude contracts standing at USD21.39 a barrel.
London-traded Brent prices have been well-supported in recent sessions, as a combination of lingering concerns over a disruption to supplies from the Middle East and worries over declining production in the North Sea-region have been boosting prices.
