Crude oil held above $94.00 a barrel on Tuesday after data showed US factory activity expanded last month at its fastest pace in 2-1/2 years, improving the demand outlook from the world’s largest oil consumer and triggering fears of an early reduction of stimulus.
This report came after a report showing manufacturing growth in China, the world`s second largest oil consumer, hit an 18-month high in November.
Investors now await the third quarter GDP and the non-farm payrolls data later this week from the US for more clues on the strength of the economy and when the Federal Reserve will begin scaling back its monetary stimulus.
Data from the US Energy Information Administration tomorrow may show crude stockpiles dropped for the first time in almost three months by 700,000 barrels last week.
Gasoline supplies are expected rose by 1.3 million barrels last week, while distillates, including heating oil and diesel, probably shrank by 1.2 million. The American Petroleum Institute is scheduled to release separate inventory data today.
Meanwhile, ministers from OPEC members Saudi Arabia and Algeria showed yesterday that the oil cartel will likely keep its oil production target of 30 million barrels per day unchanged for the first half of 2014 at a meeting in Vienna on Wednesday.
“The market is in the best situation it can be, demand is great, economic growth is improving”, said Saudi Arabian Oil Minister Ali al-Naimi said.
- WTI crude oil futures for January is trading around $ 94.04 a barrel after rising $0.22
- Brent futures for January settlement is trading around $ 111.40 a barrel after falling $0.05
- Natural gas is trading at $ 3.981 per cubic feet after falling 0.18%
- Gasoline is trading at $ 2.6785 per cubic feet after rising 0.01%
- Heating oil (diesel) is trading at $ 3.0504 a gallon after rising 0.01%