IV:Crude oil futures fluctuate with U.S. demand outlook in focus
Investing.com - Crude oil futures swung between small gains and losses on Monday, as investors awaited the release of U.S. economic data later in the day to determine the impact of the government shutdown on the demand outlook and on the Federal Reserve's stimulus program.
On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD98.00 a barrel during European morning trade, up 0.15%.
New York-traded oil futures traded in a range between USD97.51 a barrel, the daily low and a session high of USD97.95 a barrel.
The December contract ended 0.76% higher on Friday to settle at USD97.85 a barrel.
Oil futures were likely to find support at USD95.95 a barrel, the low from October 24 and resistance at USD100.29 a barrel, the high from October 22.
Later in the day, the U.S. was to release official data on industrial production, as well as a report on pending home sales.
Oil traders have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to reduce its bond-purchasing program.
Investors looked ahead to the Fed’s upcoming policy meeting later in the week, amid expectations that the central bank will delay plans to start tapering stimulus until well into next year.
Official data on Friday showed that U.S. core durable goods orders declined for the third consecutive month in September, while another report showed that U.S. consumer sentiment fell to the lowest level in almost a year this month.
The disappointing data underlined expectations that the Fed will maintain its stimulus program amid concerns over the impact of the 16-day U.S. government shutdown on the economic recovery.
U.S. crude prices have been on a downward trend in recent weeks amid concerns the recent U.S. government shutdown created a drag on economic growth and eroded demand in the world’s largest oil consumer.
Crude oil inventories in the U.S. rose by 5.2 million barrels last week to hit 379.8 million, the highest level since June 28.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery added 0.75% to trade at USD107.75 a barrel, with the spread between the Brent and crude contracts standing at USD9.75 a barrel.
