Crude Up As Demand Concerns Ease

(RTTNews) - The price of crude oil was ticking higher Monday morning as demand concerns eased amid a recent batch of upbeat macroeconomic data out of the US and China.

Light Sweet Crude Oil (WTI) futures for January delivery, edged up $0.04 to $97.69 a barrel. Last week, oil gained over 5 percent to rebound from its 6-month low as demand growth concerns eased after official data revealed surprising drop in U.S. energy inventories. News that part of a major US pipeline could open next month and ease over-supplied inventories also supported oil prices.

This morning the U.S. dollar was lingering around its 5-week low versus the euro and near a two-year low against sterling. The buck was hovering around its seven-month high versus the yen, while dipping near a two-month low against the Swiss franc.

In economic news from the euro zone, Germany's trade surplus declined more than expected in October, data from the Federal Statistical Office revealed. The trade surplus fell to EUR 17.9 billion in October from EUR 20.3 billion in September. Economists expected a decline to EUR 18.3 billion.

German industrial production declined unexpectedly by 1.2 percent month-on-month in October, when it was forecast to rise 0.7 percent, data showed. The decline in October follows a 0.7 percent drop in September and a 1.5 percent rise in August, Federal Ministry of Economics and Technology said.

Meanwhile, euro zone investor sentiment declined unexpectedly in December from a two-and-a-half year high, a monthly survey by the think tank Sentix showed today. The confidence index came in at 8 points in December, down from 9.3 in November. The reading was forecast to rise to 10.3.

During this week focus will be on the US Commerce Department's wholesales and business inventories reports for October, the Treasury Budget for November, the Labor Department's report on import and export prices for November and the producer price inflation report for November.

Also, focus will be on the crude oil inventories data from the API, due out Wednesday after the market hours, and the EIA due out the subsequent day.