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Crude oil inches lower; Brent rises as Iran talks end without agreement

Published 11/11/2013, 04:01 AM
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Investing.com - Crude oil futures edged lower on Monday, as ongoing uncertainty over the duration of the Federal Reserve’s stimulus program kept investors in a cautious mood.

On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD94.43 a barrel during European morning trade, down 0.2%.

New York-traded oil futures traded in a range between USD94.34 a barrel, the daily low and a session high of USD94.90 a barrel.

The December contract ended 0.42% higher on Friday to settle at USD94.60 a barrel.

Oil futures were likely to find support at USD93.07 a barrel, the low from November 5 and resistance at USD95.40 a barrel, the high from November 6.

Official data on Friday showed that the U.S. economy added 204,000 jobs in October, much more than the 125,000 increase forecast by economists. September's figure was revised up to 163,000 from a previously reported 148,000.

The robust data raised the possibility that the Fed may start to scale back its USD85 billion-a-month asset purchase program as soon as next month.

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.

Oil’s losses were limited after data released over the weekend showed that Chinese industrial output rose more-than-forecast in October, while consumer price inflation inched up modestly.

Industrial production rose 10.3% last month, beating expectations for a 10.0% increase, while CPI inched up to 3.2% from 3.1% in September.

China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery rose 0.35% to trade at USD105.50 a barrel, with the spread between the Brent and crude contracts standing at USD11.16 a barrel.

London-traded Brent prices were boosted after talks between Iran and the United Nations Security Council ended without a resolution that would ease sanctions against Tehran’s oil exports in exchange for concessions on its nuclear work.

Trade sanctions slapped on Iran due to its alleged nuclear ambitions have taken out more than one million barrels per day of oil from the global market.

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