Investing.com - Crude oil prices fell smartly on Monday in early Asia as a weekend official reading of China's manufacturing showed a slump that is expected to be confirmed by a closely watched private survey.
In China, the HSBC January manufacturing PMI us due at 0930 local time with a reading of 49.8 expected, the same as December. Japan also reports its manufacturing PMI for January with 52.1 expected.
At the weekend, China said January CFLP manufacturing PMI fell to 49.8 from 50.1 in December, placing it in contraction even as the timing of the Chinese New Year holiday this year relative to last should have boosted the January reading.
On the New York Mercantile Exchange, U.S. crude oil for delivery in March fell 0.90% to $47.30 a barrel.
Last week, crude oil futures rallied over 1% on Friday, on the back of a weaker dollar but the commodity still remained within close distance of a nearly six-year low as ongoing concerns over a glut in global supplies continued to weigh.
Oil prices have fallen nearly 60% since June as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.
The commodity hit a nearly six-year low on Thursday after the Federal Reserve indicated that interest rates could start to rise around mid-year.
Following its policy meeting, the Fed said it would keep rates on hold at least until June and reiterated its pledge to be patient on raising interest rates, while acknowledging the solid economic recovery and strong growth in the labor market.
Market participants were eyeing preliminary U.S. data on fourth quarter growth as well as reports on business activity in the Chicago region and revised data on consumer sentiment, due later in the day, for further indications on the strength of the economic recovery.
On the ICE Futures Exchange in London Friday, Brent oil for March delivery jumped $0.54, or 1.10%, to hit $49.67 a barrel, with the spread between the Brent and the WTI crude contracts stranding at $4.57.
In the week ahead, investors will be turning their attention to Friday’s U.S. nonfarm payrolls report for further indications on the strength of the recovery in the labor market.
On Monday, in the euro zone, Spain is to release data on the change in the number of people employed.
The U.K. is to publish its manufacturing index.
In the U.S., the Institute of Supply Management is to release data on manufacturing activity. The country will also produce a report on personal income and spending.