IV:Crude oil edges lower; global recovery hopes limit losses
Investing.com - Crude oil futures edged lower during European morning hours on Monday, but losses were limited amid indications the U.S. economic recovery was improving.
On the New York Mercantile Exchange, light sweet crude futures for delivery in March traded at USD97.28 a barrel during European morning trade, down 0.5% on the day.
New York-traded oil prices fell by as much as 0.5% earlier in the session to hit a daily low of USD97.25 a barrel. Oil futures hit a four-month high of USD98.24 a barrel on January 30.
Oil prices remained supported after data released on Friday showed that the U.S. economy added 157,000 jobs in January, while nonfarm payrolls figures for November and December were revised up by a combined 127,000 jobs.
Oil traders have been paying close attention to readings on U.S. employment levels because they offer insight into the economic health of the world's largest crude oil consumer.
Also Friday, a report showed that U.S. manufacturing activity improved to a nine-month high in January while consumer sentiment unexpectedly improved in January.
Indications that the euro zone’s sovereign debt crisis has turned a corner have also helped boost appetite for equities and riskier assets in recent weeks.
Data released earlier in the day showed that the number of unemployed people in Spain rose less-than-expected in January, increasing by 132,100 after a 59,100 rise the previous month.
Analysts had expected the number of unemployed people to rise by 150,000 last month.
Supply worries stemming from geopolitical tensions in North Africa and the Middle East also lent support to prices.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for March delivery dipped 0.4% to trade at USD116.30 a barrel, with the spread between the Brent and crude contracts standing at USD19.02 a barrel.
The spread between the two contracts widened to the highest level since January 3 amid renewed concerns over the glut of oil supply in storage at Cushing, Oklahoma, the trading hub for NYMEX oil.
Operators of the Seaway Pipeline said late last week that restrictions will limit flows on the key pipeline until the fourth quarter of 2013.
The pipeline began carrying crude to the Gulf Coast area from Cushing, last month after the flow direction was reversed.
