Investing.com - Crude oil futures added to losses during U.S. morning hours on Monday, as a broadly stronger U.S. dollar and fears over the economic health of China weighed on growth-linked assets.
On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at USD91.01 a barrel during U.S. morning trade, down 1% on the day.
New York-traded oil prices fell by as much as 1.1% earlier in the day to hit a session low of USD90.91 a barrel.
Concerns over a possible slowdown in the world’s second-largest economy weighed after data over the weekend showed that inflation in China hit a 10-month high in February, while industrial output rose at the slowest level since October 2009.
Official data showed that consumer prices in China rose to 3.2% in February from a year earlier, above expectations for a 3% increase and accelerating sharply from a 2% rate of increase in January.
The faster-than-expected increase in the rate of inflation was likely to dampen hopes that Beijing will introduce fresh easing measures in the near-term to boost economic growth.
A separate report showed that industrial production rose 9.9% in February, less than the expected 10.5% increase and following a 10.3% rise the previous month.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
A broadly stronger U.S. dollar also weighed on dollar-denominated commodities as the greenback remained supported in the wake of Friday’s better-than-expected employment data from the U.S.
The dollar index was up 0.1% to trade at 83.10. A stronger dollar makes U.S. commodities more expensive for buyers holding other currencies.
On Friday, the Department of Labor said the U.S. economy added 236,000 jobs last month, blowing past expectations for an increase of 160,000. The unemployment rate ticked down to 7.7%, the lowest level since December 2008, from 7.9% in January.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for April delivery declined 0.8% to trade at USD109.34 a barrel, with spread between the Brent and crude contracts standing at USD18.33 a barrel.
Brent prices came under additional pressure after a pipeline system used to transport North Sea oil resumed operation following a five-day halt last week.
On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at USD91.01 a barrel during U.S. morning trade, down 1% on the day.
New York-traded oil prices fell by as much as 1.1% earlier in the day to hit a session low of USD90.91 a barrel.
Concerns over a possible slowdown in the world’s second-largest economy weighed after data over the weekend showed that inflation in China hit a 10-month high in February, while industrial output rose at the slowest level since October 2009.
Official data showed that consumer prices in China rose to 3.2% in February from a year earlier, above expectations for a 3% increase and accelerating sharply from a 2% rate of increase in January.
The faster-than-expected increase in the rate of inflation was likely to dampen hopes that Beijing will introduce fresh easing measures in the near-term to boost economic growth.
A separate report showed that industrial production rose 9.9% in February, less than the expected 10.5% increase and following a 10.3% rise the previous month.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
A broadly stronger U.S. dollar also weighed on dollar-denominated commodities as the greenback remained supported in the wake of Friday’s better-than-expected employment data from the U.S.
The dollar index was up 0.1% to trade at 83.10. A stronger dollar makes U.S. commodities more expensive for buyers holding other currencies.
On Friday, the Department of Labor said the U.S. economy added 236,000 jobs last month, blowing past expectations for an increase of 160,000. The unemployment rate ticked down to 7.7%, the lowest level since December 2008, from 7.9% in January.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for April delivery declined 0.8% to trade at USD109.34 a barrel, with spread between the Brent and crude contracts standing at USD18.33 a barrel.
Brent prices came under additional pressure after a pipeline system used to transport North Sea oil resumed operation following a five-day halt last week.