Investing.com - Crude oil futures were lower on Tuesday, as fading expectations for imminent U.S. military action against Syria eased concerns over a disruption to supplies from the Middle East.
Prices rallied last week amid indications the U.S. was close to taking military action against Bashar al-Assad’s government.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD106.74 a barrel during European morning trade, down 0.85%.
New York-traded oil futures held in a range between USD106.56 a barrel, the daily low and a session high of USD107.13 a barrel.
Nymex floor trading was closed Monday for the Labor Day holiday, and yesterday’s transactions will be booked with today’s trades for settlement purposes.
Oil futures were likely to find support at USD104.32 a barrel, the low from August 23 and resistance at USD108.74 a barrel, the high from August 30.
President Obama said Saturday that he will first seek approval from Congress before ordering a military strike against Syria. A decision is not expected before September 9, when U.S. lawmakers return from their summer recess.
Oil prices surged to a 27-month high of USD112.22 a barrel on August 28 amid indications the U.S. was close to taking military action against Bashar al-Assad’s government.
Losses were limited after upbeat economic data on Monday boosted the outlook for the global recovery.
Manufacturing activity in China expanded for the first time in a year in August.
China is the world's second largest oil consumer after the U.S. and manufacturing numbers are used as indicators for fuel demand growth.
Meanwhile, in the euro zone, reports showed that manufacturing activity in Spain and Italy returned to growth for the first time since 2011, fuelling optimism over the global economy.
Oil traders now looked ahead to key macroeconomic data later this week that will determine when the U.S. will begin withdrawing its stimulus measures.
The U.S. will release a closely watched report on U.S. nonfarm payrolls on Friday amid ongoing speculation over when the Federal Reserve will start to taper its USD85 billion-a-month bond-buying program.
Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
The central bank is scheduled to meet September 17-18 to review the economy and assess 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.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery shed 0.1% to trade at USD114.25 a barrel, with the spread between the Brent and crude contracts standing at USD7.51 a barrel.
London-traded Brent futures have been well-supported in recent sessions amid renewed concerns over a disruption to supplies from Libya.
Prices rallied last week amid indications the U.S. was close to taking military action against Bashar al-Assad’s government.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD106.74 a barrel during European morning trade, down 0.85%.
New York-traded oil futures held in a range between USD106.56 a barrel, the daily low and a session high of USD107.13 a barrel.
Nymex floor trading was closed Monday for the Labor Day holiday, and yesterday’s transactions will be booked with today’s trades for settlement purposes.
Oil futures were likely to find support at USD104.32 a barrel, the low from August 23 and resistance at USD108.74 a barrel, the high from August 30.
President Obama said Saturday that he will first seek approval from Congress before ordering a military strike against Syria. A decision is not expected before September 9, when U.S. lawmakers return from their summer recess.
Oil prices surged to a 27-month high of USD112.22 a barrel on August 28 amid indications the U.S. was close to taking military action against Bashar al-Assad’s government.
Losses were limited after upbeat economic data on Monday boosted the outlook for the global recovery.
Manufacturing activity in China expanded for the first time in a year in August.
China is the world's second largest oil consumer after the U.S. and manufacturing numbers are used as indicators for fuel demand growth.
Meanwhile, in the euro zone, reports showed that manufacturing activity in Spain and Italy returned to growth for the first time since 2011, fuelling optimism over the global economy.
Oil traders now looked ahead to key macroeconomic data later this week that will determine when the U.S. will begin withdrawing its stimulus measures.
The U.S. will release a closely watched report on U.S. nonfarm payrolls on Friday amid ongoing speculation over when the Federal Reserve will start to taper its USD85 billion-a-month bond-buying program.
Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
The central bank is scheduled to meet September 17-18 to review the economy and assess 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.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery shed 0.1% to trade at USD114.25 a barrel, with the spread between the Brent and crude contracts standing at USD7.51 a barrel.
London-traded Brent futures have been well-supported in recent sessions amid renewed concerns over a disruption to supplies from Libya.