The price of crude oil was moving higher Monday morning as the euro was bouncing back from its one-week low against the US dollar on hopes of further stimulus measures by the ECB.
Light Sweet Crude Oil (WTI) futures for September delivery, added $0.70 to $93.57 a barrel. Last week oil pared most gains to settle marginally higher on demand growth concerns after the International Energy Agency cautioned that the economic slowdown could the disrupt demand for oil.
IEA trimmed its 2013 oil demand growth forecast by 0.40 mbd to 90.50 mbd and the OPEC maintained its 2012 world oil demand growth forecast at 0.90 mbd.
This morning, the U.S. dollar was leveling off from its weekly high versus the euro and the Swiss franc, while trading lower against sterling and little changed versus the yen.
In economic news from the euro zone, wholesale price inflation in Germany rose more than expected in July, the latest figures from the Federal Statistical Office showed. Wholesale price inflation quickened to 2 percent in July from 1.1 percent in June. This was expected to rise to 1.3 percent. On a monthly basis, prices increased 0.3 percent against expectations for a 0.4 percent decline. This comes after a 1.1 percent month-on-month decline in June and 0.7 fall in May.
During this week traders focus will be on the National Association of Home Builders' housing market index for August, the Commerce Department's housing starts report for July, the weekly jobless claims report and the preliminary consumer sentiment index compiled by Reuters and the University of Michigan.
Also, focus will be on the crude oil inventories data from the API, due out Tuesday after the market hours, and the EIA due out the subsequent day.
by RTT Staff Writer
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