NYMEX December crude shows early gains in Asia on growth prospects

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Investing.com - " Crude oil prices rose in early Asian trade on Monday on the demand outlook following better than expected U.S. jobs data last week and solid industrial output in China reported for October at the weekend as well as September Japanese current account data today.

On the New York Mercantile Exchange in electronic trading, light sweet crude futures for delivery in December rose to USD94.71a barrel, up 0.11%, after settling at USD94.60 a barrel on Friday.

The Department of Labor said the U.S. economy added 204,000 jobs in October, much more than the 125,000 increase forecast by economists. September's figure was revised up to 163,000 from a previously reported 148,000.

The report came one day after official data showed that the U.S. economy grew at an annual rate of 2.8% in the three months to September, well above expectations for growth of 2%.

The robust data eased concerns over a slowdown in demand from the world's largest oil consumer, particularly in light of high stock levels as refiners shut for seasonal maintenance.

Total U.S. crude oil inventories stood at 385.4 million barrels as of last week, the highest since June.

In Asia on Monday, Japan said its September current account balance came to a surplus of JPY587.3 billion in September, well above expectations of JPY400 billion and marking an eighth straight month of surplus as a weaker yen boosts exports.

The data follows weekend numbers out of China showing industrial output rose 10.3% year-on-year in October, up from a 10.2% gain in September.

Crude's gains however are tempered by U.S. dollar strength on expectations that the Federal Reserve will begin tapering its USD85 billion-a-month asset purchase program as soon as next month.

On the ICE Futures Exchange in London, Brent oil futures for December delivery rallied 1.6% on Friday to settle the week at USD105.12 a barrel.

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