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Crude oil lower ahead of U.S. supply data

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Investing.com - " Crude oil futures traded near a three-month low on Monday, amid concerns the recent U.S. government shutdown created a drag on economic growth and eroded demand in the world's largest oil consumer.

On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD100.60 a barrel during European morning trade, down 0.5%.

New York-traded oil futures held in a range between USD100.57 a barrel, the daily low and a session high USD101.22 a barrel. The December contract ended 1.58% lower at USD100.87 a barrel on Friday.

Oil futures were likely to find support at USD100.21 a barrel, the low from October 17 and resistance at USD102.30 a barrel, the high from October 17.

Oil traders shifted their attention back to the resumption of government inventory data, which had been delayed due to the 16-day U.S. government shutdown.

The U.S. Energy Information Administration will publish it weekly oil supply report covering the week ended October 11 later in the session.

The report was expected to show that U.S. crude oil stockpiles rose by 2.2 million barrels last week, while gasoline inventories were forecast to increase by 110,000 barrels.

The American Petroleum Institute, an industry group, said last week that U.S. crude inventories rose by 5.9 million barrels for the week ended October 11.

The EIA's data-release schedule will return to normal later in the week, with the publication of October 18 storage data due on Wednesday, October 23.

Investors were also awaiting key U.S. data points later in the week in order to determine the impact of the government shutdown on the Federal Reserve's stimulus program.

The September nonfarm payrolls report, which had been originally scheduled for release on October 4, was due on Tuesday.

Oil traders have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to reduce its bond purchases.

The central bank is scheduled to meet October 29-30 to review the economy and assess policy.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery shed 0.25% to trade at USD109.64 a barrel, with the spread between the Brent and crude contracts standing at USD9.04 a barrel.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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