Oil futures gained in Asia after the China data showed that consumer and producer price indexes show inflation cooling in August.
Chinese consumer and producer price indexes showed inflation cooling in August, though the results were slightly above forecast, according to data reported Friday. The August CPI came in 6.2% higher than a year earlier, easing from July's three-year-high inflation rate of 6.5%. The PPI rose 7.3% from the year-earlier period.
Asia stocks traded mostly higher Friday, with Hong Kong and Shanghai stocks climbing after Chinese data showed consumer inflation cooled slightly in August. Weighing on sentiment in Tokyo, Japan revised down its April-June gross domestic product Friday, registering a 0.5% contraction during the quarter compared to a 0.3% fall in the preliminary reading.
Oil for October delivery lost 29 cents, or 0.3%, to end at $89.05 a barrel on the New York Mercantile Exchange. Investors were also mildly disappointed that U.S. Federal Reserve Chairman Ben Bernanke offered no clear steps to prop up the U.S. economy and, by extension, to increase demand for oil.
Later that day, U.S. President Barack Obama said that the current state of the economy was a national crisis and outlined a broad jobs package of tax cuts and other incentives designed to give the economy a jolt.
MCX September crude oil futures may start today's session above Rs. 4120 levels with resistance around Rs. 4160 levels.
