Investing.com - Oil futures traded slightly lower in the early part of Monday’s Asian following a weekly gain last week amid lingering concerns about the Federal Reserve’s next monetary policy moves.
On the New York Mercantile Exchange, light, sweet crude futures for August delivery fell 0.38% to USD96.20 per barrel in Asian trading Monday after settling 0.6% Friday to settle the week at USD96.46 a barrel by close of trade.
Despite the small Friday loss, crude futures jumped 2.65% on the week. For the quarter, however, oil declined nearly 1%, as a combination of concerns over an end to the Fed’s assets purchase program and fears over a deepening slowdown in China weighed.
In U.S. economic news out last Friday, the Thomson Reuters/University of Michigan's final reading on June U.S. consumer sentiment was 84.1, well above the initial reading of 82.7. Economists expected a final June reading of 82.8.
Chicago are PMI fell to a 51.6 reading from 58.7 in May. Economists expected a June reading of 55. Readings above 50 indicate expansion. The U.S. is the world’s largest oil consumer.
Oil traders could be pensive about the Federal Reserve possibly starting to taper its USD85 billion per month in bond-buying, although members of central bank were out in force last week trying to calm jittery markets that easing will remain in place for the near-term.
Traders have been expecting the Fed will begin winding down its asset-buying activities later this year with an eye toward wrapping up quantitative easing altogether next year. That would likely boost the U.S. dollar while weighing on dollar-denominated commodities such as oil.
Elsewhere, Brent for August delivery fell 0.17% to USD101.84 per barrel on the ICE Futures Exchange.
On the New York Mercantile Exchange, light, sweet crude futures for August delivery fell 0.38% to USD96.20 per barrel in Asian trading Monday after settling 0.6% Friday to settle the week at USD96.46 a barrel by close of trade.
Despite the small Friday loss, crude futures jumped 2.65% on the week. For the quarter, however, oil declined nearly 1%, as a combination of concerns over an end to the Fed’s assets purchase program and fears over a deepening slowdown in China weighed.
In U.S. economic news out last Friday, the Thomson Reuters/University of Michigan's final reading on June U.S. consumer sentiment was 84.1, well above the initial reading of 82.7. Economists expected a final June reading of 82.8.
Chicago are PMI fell to a 51.6 reading from 58.7 in May. Economists expected a June reading of 55. Readings above 50 indicate expansion. The U.S. is the world’s largest oil consumer.
Oil traders could be pensive about the Federal Reserve possibly starting to taper its USD85 billion per month in bond-buying, although members of central bank were out in force last week trying to calm jittery markets that easing will remain in place for the near-term.
Traders have been expecting the Fed will begin winding down its asset-buying activities later this year with an eye toward wrapping up quantitative easing altogether next year. That would likely boost the U.S. dollar while weighing on dollar-denominated commodities such as oil.
Elsewhere, Brent for August delivery fell 0.17% to USD101.84 per barrel on the ICE Futures Exchange.