NYMEX crude weakens in early Asia with eyes ahead on OPEC meeting

Investing.com - Crude oil prices eased in early Asia on Friday with markets in Tokyo in light trade ahead of a three-day weekend and mixed supply/demand signals ahead of a key OPEC meeting next week.

In the New York Mercantile Exchange, West Texas Intermediate crude oil futures for delivery in January traded at $76.55 a barrel, up 0.94%, after hitting an overnight session low of $74.22 a barrel and off a high of $75.53 a barrel. Markets in Tokyo are shut on Monday.

Brent, the global benchmark, rose 1.6% to $79.33 a barrel on ICE Futures Europe on Thursday.

Overnight, a double shot of upbeat U.S. data and talk oil cartel OPEC may consider trimming output to shore up slumping prices sent crude futures rising on Thursday.

Oil prices continued to rise on reports that Libya may favor cutting output to shore up prices at OPEC's Nov. 27 meeting.

Samir Kamal, Libya's OPEC governor, told Reuters on Wednesday that OPEC could agree to take small steps to trim global supply, which drew applause in energy market.

Oil ministers from Iran, Libya, Venezuela, Ecuador and Algeria have asked for action to prevent further price declines, while Saudi Arabia and Kuwait have resisted calls to lower production.

Markets are speculating that a Saudi-backed willingness to let prices slide will prompt U.S. shale producers to halt operations as a result, as such production costs more than traditional drilling.

Once U.S. shale producers table their operations for profitability reason, prices would presumably rise as the global economy absorbs excess supply.

Upbeat U.S. data pumped up prices as well.

Manufacturing activity in the Philadelphia-region expanded at its fastest rate since December 1993 in November, fueling optimism over the U.S. economic outlook, official data showed on Thursday.

The Federal Reserve Bank of Philadelphia reported earlier that its manufacturing index improved to 40.8 this month from 20.7 in October.

Analysts had expected the index to decline to 18.5 in September.

On the index, a reading above 0.0 indicates improving conditions, below indicates worsening conditions.

The current new orders index, which reflects the demand for manufactured goods, increased 18 points, to 35.7.

The current employment index rose 10 points in November, to 22.4, and hit a 3½ year high.

Elsewhere, the Labor Department reported that the U.S. consumer price index was unchanged in October, beating expectations for a 0.1% dip.

On a year-over-year basis consumer prices rose 1.7% last month, unchanged from September, and stronger than market calls for a 1.6% jump.

Core inflation, which strips out volatile food and energy components, rose by 0.2% during the month, pushing the annual rate up to 1.8%, both figures in line with market forecasts.

Also from the Labor Department, data released earlier revealed that the number of Americans filing new claims for unemployment benefit fell by 2,000 last week, to 291,000. Economists had expected a fall to 286,000, thought it was still the tenth straight week that initial claims remained below 300,000.

The number of continuing claims also fell, to 2.33 million, the lowest level since December 2000.