Investing.com - Crude oil futures were lower during European morning hours on Monday, as concerns over a deeper-than-expected slowdown in China dented future energy demand prospects.
Losses were limited amid growing speculation policymakers in the U.S., Europe and China will implement fresh stimulus measures to boost growth in their respective economies.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD96.40 a barrel during European morning trade, shedding 0.1%.
Prices were stuck in a tight range of USD96.02 a barrel, the daily low and a session high of USD96.47 a barrel. Prices hit a four-day high of USD96.91 a barrel on Friday.
Worries over China’s cooling economy intensified after data released earlier showed that China’s HSBC Flash Purchasing Managers Index fell to a 41-month low of 47.6 in August from a preliminary reading of 47.8, as new orders slumped in the face of weakening global demand. The index stood at 49.3 in July.
The data came after the China Federation of Logistics and Purchasing said over the weekend that its Purchasing Managers Index contracted for the first time in nine months in August, falling to 49.2 from 50.1 in July.
But the disappointing data added to ongoing hopes policymakers in Beijing will introduce fresh stimulus measures to boost growth in the world’s second largest economy.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Market sentiment remained supported after Federal Reserve Chairman Ben Bernanke indicated that the U.S. central bank could implement fresh stimulus measures to strengthen the U.S. economic recovery.
Speaking at the Fed’s annual symposium in Jackson Hole, Wyoming, on Friday, Bernanke said the persistently high rate of unemployment was a “grave concern” and reiterated that the central bank was ready to provide additional policy accommodation as needed to shore up growth.
Markets were looking ahead to U.S. government data on non-farm payrolls on Friday, to see if the labor market has improved.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Meanwhile, expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets ahead of its upcoming meeting on Thursday.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery eased up 0.05% to trade at USD114.62 a barrel, with the spread between the Brent and crude contracts standing at USD18.22 a barrel.
London-traded Brent futures drew additional support from a potential disruption to supplies from Norway, the world's eighth largest exporter. Tensions in the Middle East are also supporting Brent prices.
Losses were limited amid growing speculation policymakers in the U.S., Europe and China will implement fresh stimulus measures to boost growth in their respective economies.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD96.40 a barrel during European morning trade, shedding 0.1%.
Prices were stuck in a tight range of USD96.02 a barrel, the daily low and a session high of USD96.47 a barrel. Prices hit a four-day high of USD96.91 a barrel on Friday.
Worries over China’s cooling economy intensified after data released earlier showed that China’s HSBC Flash Purchasing Managers Index fell to a 41-month low of 47.6 in August from a preliminary reading of 47.8, as new orders slumped in the face of weakening global demand. The index stood at 49.3 in July.
The data came after the China Federation of Logistics and Purchasing said over the weekend that its Purchasing Managers Index contracted for the first time in nine months in August, falling to 49.2 from 50.1 in July.
But the disappointing data added to ongoing hopes policymakers in Beijing will introduce fresh stimulus measures to boost growth in the world’s second largest economy.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Market sentiment remained supported after Federal Reserve Chairman Ben Bernanke indicated that the U.S. central bank could implement fresh stimulus measures to strengthen the U.S. economic recovery.
Speaking at the Fed’s annual symposium in Jackson Hole, Wyoming, on Friday, Bernanke said the persistently high rate of unemployment was a “grave concern” and reiterated that the central bank was ready to provide additional policy accommodation as needed to shore up growth.
Markets were looking ahead to U.S. government data on non-farm payrolls on Friday, to see if the labor market has improved.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Meanwhile, expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets ahead of its upcoming meeting on Thursday.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery eased up 0.05% to trade at USD114.62 a barrel, with the spread between the Brent and crude contracts standing at USD18.22 a barrel.
London-traded Brent futures drew additional support from a potential disruption to supplies from Norway, the world's eighth largest exporter. Tensions in the Middle East are also supporting Brent prices.