Oil near $97 before week of data, Fed meeting

BANGKOK (AP) — Oil hovered above $97 a barrel Monday, consolidating ahead of a week littered with U.S. economic reports and a Federal Reserve policy meeting.

Benchmark U.S. crude for December delivery was down 27 cents at $97.58 a barrel at midafternoon Bangkok time in electronic trading on the New York Mercantile Exchange.

The contract gained 74 cents to $97.85 on Friday but closed out the week with a 2.9 percent loss, largely due to signs of oversupply and muted demand.

U.S. data releases this week include September industrial production, retail sales, inflation and consumer confidence as well as a Fed policy meeting that could reinforce expectations that the central bank won’t begin reducing its mammoth monetary stimulus until well into next year.

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The expansion of the U.S. money supply is aimed at supporting economic recovery and reducing high unemployment but has also been a boon for investors in stocks and commodities. The timing of the stimulus withdrawal has become a matter of intense speculation in markets.

Brent crude, a benchmark for international crude also used by U.S. refineries, was up 47 cents at $107.40 on the ICE futures exchange in London.

In other energy futures trading on the Nymex:

— Wholesale gasoline was up 0.7 cent at $2.57 a gallon.

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— Natural gas fell 0.8 cent to $3.628 per 1,000 cubic feet.

— Heating oil rose 0.9 cent to $2.918 a gallon.

 

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