U.S. crude oil settled higher Monday in a late rally, after the dollar weakened against a basket of major currencies, with investors weighing some upbeat jobs and employment data from the U.S. last week, with the Federal Reserve expected to continue monetary stimulus through the year. Crude oil traded higher for most part of the day on some weak macroeconomic data from China, the second largest energy consumer in the world.
Over the weekend, data from China showed year-on-year inflation rate accelerated unexpectedly to 3.2 percent in February, the highest in 10 months. Meanwhile, China’s industrial production registered its weakest increase since October 2009 while Retail Sales advanced the least since January 2005 over the same period.
Light Sweet Crude Oil futures for April delivery, the most actively traded contract, gained $0.11 or 0.1 percent to close at $92.06 a barrel on the New York Mercantile Exchange Monday.
Crude prices for April delivery scaled a high of $92.15 a barrel intraday and a low of $90.89.
Last week oil settled higher on a weak dollar and some upbeat jobs data out of the U.S., with investor sentiments improving after ECB President Mario Draghi’s comments over growth in the eurozone.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 82.60 on Monday, down from 82.72 late Friday in North American trade. The dollar scaled a high of 82.83 intraday and a low of 82.59.
The euro traded higher against the dollar at $1.3039 on Monday, as compared to $1.2986 late Friday in North America. The euro scaled a high of $1.3038 intraday and a low of $1.2980.
In economic news from the eurozone, Germany’s exports grew at a faster than expected pace of 1.4 percent in January from a month ago, data from the Federal Statistical Office showed. Economists had forecast the rate to rise to 0.5 percent from 0.2 percent in December. Likewise, imports advanced 3.3 percent, sharper than the 0.7 percent rise expected by economists. On a yearly basis, exports grew 3.1 percent and imports rose 2.9 percent in January.
During the week, investor focus will be on the U.S. Commerce Department’s retail sales report for February, the weekly jobless claims report, preliminary consumer sentiment reading based on a survey by Reuters and the University of Michigan for March, the producer and consumer price inflation reports for February, the U.S. Commerce Department’s business inventories report for January and the results of the New York Federal Reserve’s manufacturing survey.
Traders will also focus on the crude oil inventories data from the API due Tuesday and the EIA report due Wednesday.
by RTT Staff Writer
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