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NYMEX-U.S. crude edges lower, China econ data in focus
September 1, 2014 / 12:56 AM / 3 years ago

NYMEX-U.S. crude edges lower, China econ data in focus

SINGAPORE, Sept 1 (Reuters) - U.S. crude futures edged lower on Monday, following gains in the previous four sessions on strong economic data in the United States and worries that the intensifying crisis in Ukraine may trigger more sanctions.

Oil prices on both sides of the Atlantic registered their second straight month of losses in August, with Brent down 2.8 percent and U.S. crude falling 2.3 percent.

Weak demand and rising global production is weighing on oil despite the intensifying Ukraine crisis which could trigger more sanctions on Russia, Europe’s biggest supplier of oil, coal and natural gas.

Investors will be watching China’s official manufacturing PMI reading on Monday. Any further sign of weakness in factory activity may strengthen fears of a slowdown in the major commodity user, and spur declines in oil.

FUNDAMENTALS

* U.S. crude for October delivery had fallen 6 cents to $95.90 a barrel by 0038 GMT. The contract gained $1.41 on Friday. Brent crude traded 7 cents lower at $103.12 a barrel, after rising 73 cents in the previous session.

* Russian President Vladimir Putin called on Sunday for immediate talks on the “statehood” of southern and eastern Ukraine, while his Ukrainian counterpart Petro Poroshenko said his country was close to the point of all-out war with Russia.

* Russian oil and gas companies will honour their supply contracts despite tensions with the West and U.S. and European Union sanctions, Igor Sechin, head of Russian oil company Rosneft, told German magazine Der Spiegel.

* Libya’s oil production has risen to 700,000 barrels per day, a spokesman for state-run National Oil Corp (NOC) said on Sunday.

* Iranian President Hassan Rouhani said on Saturday new U.S. sanctions were against the spirit of Tehran’s nuclear negotiations with world powers, but added he was not pessimistic about the talks continuing.

* Money managers cut their net long U.S. crude futures and options positions in the week to August 26, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

* Egypt’s oil ministry said on Sunday the United Arab Emirates would provide “about $9 billion” worth of petroleum products to Egypt over the next year in deal to come into effect Monday.

MARKETS NEWS

* Asian shares were skittish on Monday in the face of a deepening Ukraine crisis, while the euro touched a fresh one-year low ahead of this week’s European Central Bank meeting.

* MSCI’s broadest index of Asia-Pacific shares outside Japan was down about 0.2 percent in early trading, pulling away from Thursday’s high of 515.13, its highest since early 2008.

* Japan’s Nikkei stock average added about 0.3 percent, after shedding 1.3 percent in August.

DATA/EVENTS

The following data is expected on Monday: (Time in GMT)

0100 China NBS Manufacturing PMI Aug

0145 China HSBC Services PMI Aug

0600 Germany GDP Detailed QQ Q2

0800 Eurozone Markit Mfg Final PMI Aug (Reporting by Jacob Gronholt-Pedersen; Editing by Joseph Radford)

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