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Crude trims earlier losses on solid U.S. service-sector data

Published 08/05/2013, 11:50 AM
Updated 08/05/2013, 11:51 AM
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Investing.com - U.S. crude oil prices trimmed earlier losses on Monday after industry data revealed the U.S. service sector was busier in July than markets were expecting.
 
On the New York Mercantile Exchange, light sweet crude futures for delivery in September traded at USD106.86 a barrel during U.S. trading, down 0.07%.

The September contract settled down 0.88% at USD106.94 a barrel on Friday.
 
The Institute of Supply Management reported earlier that its non-manufacturing purchasing managers' index rose to 56.0 in July from a three year low of 52.2 in June.  

Analysts had expected the index to rise to to 53.0 last month.

An increase in new orders drove gains, with the new orders component of the index rising to 57.7 from 50.8 in June.
 
A reading over 50 signifies expansion.
 
Separately, China’s HSBC Purchasing Managers' Index for the service-sector industry for July released earlier came in at 51.3, unchanged from June’s reading.

The official government reading for non-manufacturing PMI in July released over the weekend hit 54.1 compared with 53.9 in June.
 
The numbers helped oil trim earlier losses stemming from Friday's lackluster U.S. July jobs report.
 
The Bureau of Labor Statistics reported earlier that the U.S. economy added 162,000 jobs in July, missing expectations for an increase of around 189,000.

The report also revealed that the U.S. unemployment rate ticked down to 7.4% in July, from 7.6% the previous month. Analysts had expected the unemployment rate to slip to 7.5% last month.
 
The news dampened spirits on energy markets on concerns that a less robust U.S. economy will demand less fuel and energy going forward.
 
On the ICE Futures Exchange, Brent oil futures for September delivery were down 0.18% at USD108.76 a barrel, up USD1.90 from its U.S. counterpart.








 

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