Crude futures traded little changed before the release of the US economic data which may show when the Federal Reserve will begin to taper its monetary stimulus in the world’s largest economy.
In New York, crude futures fluctuated after dropping by 2.9% last week, the most in five weeks; meanwhile a series of U.S government data is expected to be released this week, including figures for industrial production which are expected to show a climb in its output in September.
Its “premature” to comment on what decision OPEC will take on production at a December meeting, U.A.E. Energy Minister Suhail Mohammed Al Mazrouei said in Singapore, earlier today.
“There’s a lot of economic data this week,” said Ric Spooner, a chief market analyst at CMC Markets in Sydney. “Weaker data will be bad news for the oil market. There is resistance at the 200-day moving average at about $98.70, and support” at $95, he added.
The West Texas Intermediate deliveries for December came in at $97.71 per barrel on the New York Mercantile Exchange, while Brent crude December settlement gained 51 cents to $107.44 a barrel on the ICE Futures Europe exchange. The European benchmark crude came in at $9.71 to WTI futures.
Crude Futures – Factory Outputs
The industrial production in the world’s largest economy rose by 0.4% in September, while manufacturing gained 0.3%, compared to the previous reading of 0.7% in August, analysts forecasted
Meanwhile, members of the Federal Open Market Committee will begin their two-day meeting tomorrow, as market participants are hoping to get a hint as to what the Fed’s next move may be. After the release of the disappointing US payroll data and the 16-day government shutdown, analysts are expecting the Federal Reserve to delay tapering its $85 billion monthly bond purchases till at least next year March.
The Organization of Petroleum Exporting Countries is meeting in Vienna on December 4.
Last month, Iraq’s crude exports declined 62.1 million barrels according to Asim Jihad, a spokesman from the oil ministry. Shipments from the southern terminal of Basra came in at 54.6 million barrels in September, while exports from Kirkuk as at 7.5 million barrels, Asim confirmed in an email yesterday.
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