Investing.com - Crude oil futures were higher during U.S. morning hours on Monday, as investors eyed the outcome of a closely contested election in Italy.
Markets also digested data showing manufacturing activity in China expanded at the slowest rate in four months in February, but remained in expansion territory.
On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at USD93.62 a barrel during U.S. morning trade, up 0.5% on the day.
New York-traded oil prices rose by as much as 1.3% earlier in the day to hit a session high of USD94.44 a barrel. Nymex prices fell to as low as USD92.49 on Friday, the weakest level since January 4.
Market sentiment was buoyed by hopes that a pro-reform government would emerge following general elections. Meanwhile, speculation over a low voter turnout in northern Italy help ease concerns over a strong election performance by former Prime Minister Silvio Berlusconi.
Exit polls were due to be published after voting closed at 3pm local time, with final results expected Tuesday.
The news prompted investors to move in to riskier assets such as the euro and industrial commodities and shun safe-haven assets like the U.S. dollar and Treasuries.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.3% to trade at 81.31.
Oil prices typically strengthen when the U.S. currency weakens as the dollar-priced commodity becomes cheaper for holders of other currencies.
Prices held in rangebound trade during the Asian trading session after data showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a four-month low of 50.4 in February from a final reading of 52.3 in January.
The measure however still remains above 50.0, indicating an expansion in manufacturing activity.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand and manufacturing numbers are often seen as indicators for future fuel demand growth.
Oil traders were also worried about impending sharp automatic U.S. spending cuts of USD85 billion, known as sequestration, due to take effect on March 1 unless Congress and the White House find a way to reach an agreement.
Previous budget battles in Washington have rattled financial markets.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for April delivery rose 0.85% to trade at USD115.06 a barrel, with spread between the Brent and crude contracts standing at USD21.44 a barrel.
Market players looked ahead to talks on Tuesday between Iran and global powers to resolve the ongoing crisis over Tehran's disputed nuclear program.
The six powers, known as the P5+1, are set to offer Iran some relief from international sanctions if it agrees to curb its production of higher-grade enriched uranium.
Markets also digested data showing manufacturing activity in China expanded at the slowest rate in four months in February, but remained in expansion territory.
On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at USD93.62 a barrel during U.S. morning trade, up 0.5% on the day.
New York-traded oil prices rose by as much as 1.3% earlier in the day to hit a session high of USD94.44 a barrel. Nymex prices fell to as low as USD92.49 on Friday, the weakest level since January 4.
Market sentiment was buoyed by hopes that a pro-reform government would emerge following general elections. Meanwhile, speculation over a low voter turnout in northern Italy help ease concerns over a strong election performance by former Prime Minister Silvio Berlusconi.
Exit polls were due to be published after voting closed at 3pm local time, with final results expected Tuesday.
The news prompted investors to move in to riskier assets such as the euro and industrial commodities and shun safe-haven assets like the U.S. dollar and Treasuries.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.3% to trade at 81.31.
Oil prices typically strengthen when the U.S. currency weakens as the dollar-priced commodity becomes cheaper for holders of other currencies.
Prices held in rangebound trade during the Asian trading session after data showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a four-month low of 50.4 in February from a final reading of 52.3 in January.
The measure however still remains above 50.0, indicating an expansion in manufacturing activity.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand and manufacturing numbers are often seen as indicators for future fuel demand growth.
Oil traders were also worried about impending sharp automatic U.S. spending cuts of USD85 billion, known as sequestration, due to take effect on March 1 unless Congress and the White House find a way to reach an agreement.
Previous budget battles in Washington have rattled financial markets.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for April delivery rose 0.85% to trade at USD115.06 a barrel, with spread between the Brent and crude contracts standing at USD21.44 a barrel.
Market players looked ahead to talks on Tuesday between Iran and global powers to resolve the ongoing crisis over Tehran's disputed nuclear program.
The six powers, known as the P5+1, are set to offer Iran some relief from international sanctions if it agrees to curb its production of higher-grade enriched uranium.