IV:Crude oil futures fluctuate on China data, U.S. debt impasse
Investing.com - Crude oil futures swung between gains and losses on Monday, as weak Chinese export data and growing concerns over U.S. debt ceiling negotiations weighed on appetite for growth-linked assets.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD102.33 a barrel during European morning trade, up 0.3%.
New York-traded oil futures held in a range between USD101.24 a barrel, the daily low and a session high USD102.44 a barrel.
The November contract ended 0.96% lower at USD102.02 a barrel on Friday. Earlier Friday, Nymex oil prices fell to a session low of USD100.60 a barrel, the weakest level since July 3.
Oil futures were likely to find support at USD100.60 a barrel, the low from October 11 and resistance at USD103.57 a barrel, the high from October 10.
Market sentiment was dented after Chinese trade data over the weekend showed that exports unexpectedly slowed in September, sparking renewed concerns over the outlook for global demand.
Government data on Saturday showed that China’s trade surplus narrowed to USD15.2 billion last month from a surplus of USD28.6 billion in August, compared to estimates for a surplus of USD27.7 billion.
Chinese exports fell 0.3% from a year earlier, defying expectations for a 6% increase and following a 7.2% gain in August.
Separately, data released earlier Monday showed that consumer price inflation in China rose 3.1% in September, above expectations for a 2.9% increase and accelerating from 2.6% in August.
Market players now looked ahead to a raft of Chinese economic data later in the week, including reports on gross domestic product, industrial production and retail sales.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Meanwhile, markets were growing increasingly concerned over negotiations to raise the U.S. debt ceiling.
Negotiations between U.S. President Barack Obama and House Republicans broke down over the weekend, fuelling concerns that a deal to raise the government borrowing limit would not be struck ahead of Thursday’s deadline to avert an unprecedented U.S. sovereign debt default.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery dipped 0.05% to trade at USD111.25 a barrel, with the spread between the Brent and crude contracts standing at USD8.92 a barrel.
