WSJ:OIL FUTURES: Crude Mixed In Thin Trade; Economic Outlooks Cue
By Mari Iwata
Of DOW JONES NEWSWIRES
TOKYO (Dow Jones)--Crude-oil futures were mixed amid holiday-thinned trading in Asia Tuesday, as investors were generally upbeat after a positive U.S. Commerce Department report overnight.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at $87.25 a barrel at 0647 GMT, down 2 cents in the Globex electronic session. October Brent crude on London's ICE Futures exchange rose 29 cents to $112.17 a barrel.
The Commerce Department's report, which showed consumer spending rose more than expected in July, has generated positive sentiment for equities and commodities in Asia, said Koichi Murakami, analyst with Daiichi Shohin, Tokyo-based broker.
Nymex crude traded in positive territory for much of the day, but edged into negative territory in the Asian afternoon.
"We have a series of major economic indicators due later this week, including U.S. job data. Any bad results may send crude prices near $80," Murakami said.
Traders should view the recent oil price rally--Nymex has risen by around $5 since Aug. 19, advancing in six of the last seven session--as a bear market correction that could potentially be erased within a couple of sessions, Jim Ritterbusch, president of oil trading advisory firm Ritterbusch & Assoc., said in a note.
The biggest focus will be the U.S. Labor Department's monthly non-farm payroll report, the most closely watched barometer on employment levels in the world's largest economy, due on Friday, Murakami and Ritterbusch said.
Prospects for U.S. and European economies have been increasingly important cues for crude-oil prices in recent months, as economic growth boosts oil consumption.
Nymex reformulated gasoline blendstock for September--the benchmark gasoline contract--rose 79 points to $2.9143 a gallon, while September heating oil traded at $3.0181, also 79 points higher.
ICE gasoil for September changed hands at $960.25 a metric ton, down $3.00 from Monday's settlement.
-By Mari Iwata, Dow Jones Newswires; 813-6269-2798; mari.iwata@dowjones.com
