IV:Crude oil futures little changed ahead of U.S. data
Investing.com - Crude oil futures were little changed on Friday, as markets awaited the release of key U.S. jobs data later in the day, amid growing expectations for the Federal Reserve to soon begin scaling back its stimulus program.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD108.36 a barrel during European morning trade, down 0.01%.
The October contract settled up 1.06%, at USD108.37 a barrel on Thursday.
Oil futures were likely to find support at USD106.82 a barrel, the low from September 4 and resistance at USD110.03 a barrel, the high from August 29.
Speculation that the Fed could begin tapering its monthly bond purchases as soon as this month grew stronger after data on Thursday showed that U.S. sector activity expanded at the fastest rate since March 2011 in August.
The Institute of Supply Management said that its non-manufacturing purchasing managers' index rose to 58.6 in August, from a reading of 56.0 the previous month, hitting ta 29-month high.
In addition, the Department of Labor said the number of people filing for initial jobless benefits in the week ending August 30 fell by 9,000 to a seasonally adjusted 323,000, compared to forecasts for a decline of 2,000.
Investors were looking ahead to a highly-anticipated U.S. nonfarm payrolls report later in the day, as it was seen as key to the Fed’s decision on tapering.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of global equities.
Separately, the U.S. Energy Information Administration said on Thursday that crude oil stockpiles declined by 1.8 million barrels in the week ending August 30, less than the expected 1.9 million fall, after a 3 million barrel rise the previous week.
Meanwhile, concerns over a U.S. military intervention against Syria’s government persisted, as the U.S. government was set to vote next week on President Barack Obama's proposal to launch a missile strike.
At a meeting in Russia, world leaders from the Group of 20 nations put pressure on President Obama to decide against launching military strikes in Syria, which many of them fear would hurt the global economy and push up oil prices.
While Syria is not a major oil producer, investors fear that the two-year-old civil war could spill over to affect oil supplies in nearby countries.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery fell 0.19% to trade at USD115.04 a barrel, with the spread between the Brent and crude contracts standing at USD6.68 a barrel.
