Investing.com - Brent oil futures rallied on Monday, amid renewed concerns over a disruption to supplies Libya, while investors eyed the Federal Reserve's upcoming policy meeting this week.
On the ICE Futures Exchange in London, Brent oil futures for February delivery climbed 1.05% to trade at USD109.48 a barrel during U.S. morning trade. London-traded Brent prices rose to a session high of USD110.40 a barrel, the strongest level since December 9.
Libyan oil-export terminals of Es Sider, Ras Lanuf and Zueitina remained closed on Monday after the government and rebel leaders failed to agree on terms to reopen the ports.
Brent prices fell sharply last week amid speculation that the ports, shut since July, would be reopened.
Prices received an additional boost after data showed that manufacturing activity in the euro zone expanded at the fastest pace since May 2011 in December.
Market research group Markit said that its preliminary manufacturing purchasing managers’ index inched up to a seasonally adjusted 52.7 this month from a final reading of 51.6 in November. Analysts had expected the index to inch up to 51.9 this month.
The upbeat data came after a report showed that manufacturing activity in Germany improved to a 30-month high this month.
Oil futures were lower during Asian trade after data showed that Chinese manufacturing activity slumped to a three-month low in December.
China’s HSBC manufacturing index ticked down to 50.5 this month from a final reading of 50.8 in November. Economists had expected the index to rise to 51.0.
China is the world’s largest oil consuming nation and manufacturing numbers are used as indicators for fuel demand growth.
Elsewhere, on the New York Mercantile Exchange, West Texas Intermediate crude for delivery in February traded at USD97.50 a barrel, up 0.6%. New York-traded oil futures traded in a range between USD96.53 a barrel and USD97.92 a barrel.
Meanwhile, the spread between the Brent and U.S. crude contracts stood at USD11.98 a barrel.
Market players prepared for this week’s Federal Reserve meeting and possible news on the fate of the central bank’s bond-buying program. The central bank is scheduled to meet December 17-18 to review the economy and assess monetary policy.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Data released earlier showed that the New York Federal Reserve’s index of manufacturing conditions improved less-than-expected in December.
A separate report said that industrial output rose 1.1% in November, beating forecasts for a 0.5% gain.
On the ICE Futures Exchange in London, Brent oil futures for February delivery climbed 1.05% to trade at USD109.48 a barrel during U.S. morning trade. London-traded Brent prices rose to a session high of USD110.40 a barrel, the strongest level since December 9.
Libyan oil-export terminals of Es Sider, Ras Lanuf and Zueitina remained closed on Monday after the government and rebel leaders failed to agree on terms to reopen the ports.
Brent prices fell sharply last week amid speculation that the ports, shut since July, would be reopened.
Prices received an additional boost after data showed that manufacturing activity in the euro zone expanded at the fastest pace since May 2011 in December.
Market research group Markit said that its preliminary manufacturing purchasing managers’ index inched up to a seasonally adjusted 52.7 this month from a final reading of 51.6 in November. Analysts had expected the index to inch up to 51.9 this month.
The upbeat data came after a report showed that manufacturing activity in Germany improved to a 30-month high this month.
Oil futures were lower during Asian trade after data showed that Chinese manufacturing activity slumped to a three-month low in December.
China’s HSBC manufacturing index ticked down to 50.5 this month from a final reading of 50.8 in November. Economists had expected the index to rise to 51.0.
China is the world’s largest oil consuming nation and manufacturing numbers are used as indicators for fuel demand growth.
Elsewhere, on the New York Mercantile Exchange, West Texas Intermediate crude for delivery in February traded at USD97.50 a barrel, up 0.6%. New York-traded oil futures traded in a range between USD96.53 a barrel and USD97.92 a barrel.
Meanwhile, the spread between the Brent and U.S. crude contracts stood at USD11.98 a barrel.
Market players prepared for this week’s Federal Reserve meeting and possible news on the fate of the central bank’s bond-buying program. The central bank is scheduled to meet December 17-18 to review the economy and assess monetary policy.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Data released earlier showed that the New York Federal Reserve’s index of manufacturing conditions improved less-than-expected in December.
A separate report said that industrial output rose 1.1% in November, beating forecasts for a 0.5% gain.