Investing.com - Crude oil futures came off the lowest levels of the session on Monday, after data showed that manufacturing activity in the New York region jumped to an almost five-year high this month.
On the New York Mercantile Exchange, crude oil for delivery in November slumped to a daily low of $89.90 a barrel, before recovering to last trade at $91.55 during U.S. morning hours, up 18 cents, or 0.2%.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery traded at $98.15, 18 cents higher, or 0.19%.
London-traded Brent futures hit a session low of $97.02 a barrel earlier, a level not seen since April 18, 2013.
The Federal Reserve Bank of New York said that its general business conditions index increased to 27.5 from 14.7 in August, the highest reading since October 2009. Economists had expected the index to tick up to 16.0.
A separate report showed that U.S. manufacturing activity fell 0.4% in August, as motor vehicle output dropped sharply.
Excluding automobiles, manufacturing production was up 0.1% in August. The report showed that factory output was up 4.6% on a year-over-year basis, pointing to underlying strength in the sector.
Oil prices were weaker earlier after data released on Saturday showed that China's factory output grew at the weakest pace in nearly six years in August, adding to concerns over a slowdown in the world’s second largest economy.
Industrial production rose at an annualized rate of 6.9% last month, missing estimates for a gain of 8.8% and slowing from an increase of 9.0% in July.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
A broadly stronger U.S. dollar also weighed, as expectations for an early hike in U.S. interest rates continued to bolster investor demand. The greenback traded close to a 14-month high versus a basket of six other major currencies.
Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.
In the week ahead, investors will be focusing on the outcome of Wednesday’s Federal Reserve policy meeting, amid speculation the central bank could adopt more hawkish language, possibly by omitting mention of its commitment to keep rates low for a "considerable time".
The Fed was expected to cut its asset purchase program by another $10 billion, which would keep it on track for winding up the program in October, and to start raising interest rates sometime in mid-2015.