By Victor Reklaitis, MarketWatch
NEW YORK (MarketWatch) — Oil prices stepped higher on Monday, shrugging off weaker-than-expected Chinese economic data, as investors continued to focus on Russia-Ukraine tensions that might curb crude supplies.
Crude for May delivery CLK4 +0.71% rose 73 cents, or 0.7%, to $100.19 a barrel. Oil’s European benchmark, Brent crude, also gained, with the May contract up 49 cents, or 0.5%, to $107.41 a barrel.
If Russia faces additional sanctions, “this could – at least theoretically – curb Russian oil exports and justify a certain price premium,” said Commerzbank analysts in a note on Monday. But they added this risk has been ignored in recent days. Read more: Ukraine orders its military to withdraw from Crimea
Meanwhile, a preliminary gauge of China’s factory activity fell to an eight-month low.
“The renewed decline in the Chinese Purchasing Managers’ Index for the manufacturing sector to its lowest level in eight months points to a cooling of Chinese demand,” the Commerzbank analysts said.
Asian stock markets closed higher on Monday despite the weaker-than-expected economic data, with stimulus talk offsetting that soft report.
Last week, oil prices rose 0.9%, in sessions that were marked by speculation about the Ukraine crisis and concerns about the potential for higher U.S. interest rates.
Elsewhere in the energy complex on Monday, April natural gas NGJ14 -0.19% dipped 4 cents, or 0.9%, to $4.27 per million British thermal units. April heating oil HOJ4 +0.42% added a penny, or 0.5%, to $2.93 a gallon, while gasoline RBJ4 +0.91% for the same month gained 3 cents, or 0.9%, to $2.93 a gallon.
