FX:Crude gains on Chinese manufacturing and service data
Forexpros - Crude oil futures rose in Asian trading on Monday after China reported solid manufacturing and service-sector data, pumping up hopes the large economy is turning a corner to more robust growth and will demand more fuels and energy going forward.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at USD89.17 a barrel on Monday, up 0.30%, off from a session high of USD89.19 and up from an earlier session low of USD88.80.
China Logistics Information Center revealed earlier that its manufacturing purchasing managers' index rose to an annual rate of 50.60 for November from 50.20 in the preceding month.
The data met expectations, though the number was strong enough to fuel hopes China will stick with a 7.5% gross domestic product growth target for 2013.
Meanwhile, China's service-sector purchasing managers' index hit 55.6 in November from 55.5 in October.
The commodity also saw demand after German Chancellor Angela Merkel told the Bild am Sonntag newspaper the country would be willing to consider writing off Greek debt if Athens can rely on its own revenue and cease borrowing.
The news boosted hopes Europe is moving closer to firewalling and extinguishing its debt crisis.
Ongoing tensions in the Middle East bolstered prices as well.
In Egypt, President Mohammed Morsi gave himself sweeping new powers recently, which has sparked protests around the country asw well as judicial strikes.
Fiscal uncertainty in the U.S., however, capped gains, as market participants continue to monitor negotiations between Congress and the White House over how to deal with the fiscal cliff, a series of tax hikes and spending cuts due to take effect at the same time at the end of this year.
The U.S. nonpartisan Congressional Budget Office has said failure to steer the country away from the fiscal cliff could tip the economy into a recession next year.
On the ICE Futures Exchange, Brent oil futures for January delivery were up 0.23% and trading at USD111.45 a barrel, up USD22.28 from its U.S. counterpart.
