Crude oil steady above the $100-handle as the cold weather in the US and the weaker dollar are providing support for prices and amid speculation that demand from China will increase.
Data released from China, the world`s second largest oil consumer, showed an improvement in Chinese credit growth, meanwhile in the US demand for heating oil remains high as a consequence of the cold weather.
Keeping crude above the $100-handle is also the weaker dollar, which trades near six-week lows against a basket of currencies following a number of disappointing US data released last week, making oil more attractive.
Now investors will be closely watching the minutes of the Federal Reserve`s last policy meeting on Wednesday and China`s manufacturing data on Thursday for clues on the health of the global economy.
Moreover, on Tuesday Iran and the world powers will start negotiations to strike a long-term nuclear deal. A positive outcome would push oil prices lower as sanctions on Tehran would ease, increasing global oil supplies.
And while the political instability in Libya is adding to global supply concerns, there was no settlement for crude on Monday as US markets were shut for President’s Day holiday.
- WTI crude oil futures for March is trading around $ 100.65 a barrel after rising $0.36
- Brent futures for March settlement is trading around $ 109.22 a barrel after rising $0.04
- Natural gas is trading at $ 5.537 per cubic feet after rising 6.19%
- Gasoline is trading at $ 2.8176 per cubic feet after rising 0.44%
- Heating oil (diesel) is trading at $ 3.0935 a gallon after rising 0.50%