WSJ:Oil Rises in Asia on U.S. Jobs Data, Syria Conflict
By Eric Yep
Crude-oil futures are higher in Asian trade Monday on concerns about the escalating conflict in Syria and positive economic data in the U.S.
On the New York Mercantile Exchange, light, sweet crude for delivery in June traded at $96.51 a barrel at 0641 GMT, up $0.90 in the Globex electronic session. June Brent crude on London's ICE Futures exchange rose $0.76 to $104.95 a barrel.
Nymex crude rose to as high as $97.17 a barrel in early trading hours in Asia, while Brent crude topped out at $105.49 a barrel. Both later pared gains after a purchasing managers' index for China's services sector slowed sharply, reinforcing concerns that China's economy is slowing.
Earlier Monday, HSBC's China services purchasing managers index slowed to 51.1 in April, from 54.3 in March.
The U.S. added 165,000 jobs in April, beating the consensus forecast of 140,000 jobs, data showed Friday.
"A stronger-than-expected U.S. labor market report sent Wall Street to record highs on Friday, lifting global risk appetite, which was also underpinned by market belief that major central bank accommodation will sustain," Singapore-based OCBC Bank said in an note.
Oil prices are also supported by news of Israel launching airstrikes into Syria on Sunday for the second time in three days, raising concerns of a wider conflict that could disrupt oil supply.
"A key risk posed by the Syria conflict is that it will further destabilize neighboring countries, like Iraq, and exacerbate deepening sectarian tensions across the entire region," Barclays said in a note.
Investors will take direction from more economic data from China later this week--trade and inflation figures are due for release Wednesday and Thursday, respectively.
Hedge funds and other money managers added to bullish bets on crude oil in the week ended Tuesday, with the number of net-long positions rising to 193,962 contracts, up from 182,408 contracts, according to data from the Commodity Futures Trading Commission.
Nymex reformulated gasoline blendstock for June--the benchmark gasoline contract--rose 176 points to $2.8430 a gallon, while June heating oil traded at $2.9052, 208 points higher.
ICE gasoil for May changed hands at $861.50 a metric ton, up $3.50 from Friday's settlement.
