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NYMEX crude oil rebounds in Asia on global growth prospects

Published 12/09/2013, 08:40 PM
Updated 12/09/2013, 08:44 PM
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Investing.com - Crude oil prices rose in Asia on Tuesday on continued expectations for rebounding global growth.

On the New York Mercantile Exchange, light sweet crude futures for delivery in January traded at USD97.45, up 0.11%, after hitting an overnight session low of USD97.32 and a high of USD97.96.

On Friday, the Department of Labor reported that the U.S. economy added 203,000 jobs in November, beating expectations for a 180,000 increase and up from a downwardly revised 200,000 rise the previous month.

In the private sector, 196,000 jobs were added last month, compared to expectations for a 180,000 rise, after an increase of 214,000 in October.

The report also said the U.S. unemployment rate fell to 7.0% in November from 7.3% in October, beating expectations for a downtick to 7.2%.

Also on Friday, the preliminary Thomson Reuters/University of Michigan consumer sentiment index increased to 82.5 in December from 75.1 the previous month, far surpassing expectations for a 76.0 reading.

The data sent oil rising on sentiments that the U.S. economy is gaining momentum and will demand more fuel and energy going forward.

However, monetary implications of a more robust U.S. economy capped the commodity's gains.

The jobs report kept expectations firmly in place that the Federal Reserve will begin scaling back its USD85 billion in monthly bond purchases in 2014.

Fed bond purchases aim to drive recovery by driving down interest rates, weakening the dollar while they remain in place, though talk of their dismantling strengthens the greenback.

A stronger greenback makes oil a less attractive commodity on dollar-denominated exchanges.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.01% at 80.15.

On the ICE Futures Exchange, Brent oil futures for January delivery ended down 2% to USD109.39 a barrel.

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