ND:Crude oil futures edge higher after upbeat euro zone PMI
Investing.com - U.S. oil futures edged higher on Monday, following the release of upbeat euro zone manufacturing data, while investors eyed the Federal Reserve's upcoming policy meeting this week.
On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in February traded at USD97.16 a barrel during European morning trade, up 0.25%. New York-traded oil futures traded in a range between USD96.53 a barrel and USD97.17 a barrel.
Nymex oil futures were likely to find support at USD96.27 a barrel, the low from December 13 and resistance at USD98.17 a barrel, the high from December 12.
The February contract fell to USD96.27 a barrel on Friday, the lowest since December 4, before settling at USD96.93 a barrel, down 0.91%.
Oil futures turned higher after data showed that manufacturing activity in the euro zone expanded at the fastest pace since May 2011 in December.
Market research group Markit said that its preliminary manufacturing purchasing managers' index inched up to a seasonally adjusted 52.7 this month from a final reading of 51.6 in November. Analysts had expected the index to inch up to 51.9 this month.
The upbeat data came after a report showed that manufacturing activity in Germany improved to a 30-month high this month.
Oil futures were lower during Asian trade after data showed that Chinese manufacturing activity slumped to a three-month low in December.
China's HSBC manufacturing index ticked down to 50.5 this month from a final reading of 50.8 in November. Economists had expected the index to rise to 51.0.
China is the world's largest oil consuming nation and manufacturing numbers are used as indicators for fuel demand growth.
Meanwhile, market players prepared for this week's Federal Reserve meeting and possible news on the fate of the central bank's bond-buying program.
The central bank is scheduled to meet December 17-18 to review the economy and assess monetary policy.
Recent signs of improvement in the labor market and last week's agreement on a two-year U.S. budget deal were seen as removing obstacles to the winding back of monetary stimulus.
The Fed's stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for February delivery climbed 0.85% to trade at USD109.26 a barrel, while the spread between the Brent and U.S. crude contracts stood at USD12.10 a barrel.
