Oil slips to $111, growth hopes support

LONDON Mon Jan 7, 2013 4:07pm IST

A man fills a jerry can with diesel at a fuel station in Juba October 11, 2012. Picture taken October 11, 2012. REUTERS/Adriane Ohanesian/Files

A man fills a jerry can with diesel at a fuel station in Juba October 11, 2012. Picture taken October 11, 2012.

Credit: Reuters/Adriane Ohanesian/Files

Related Topics

LONDON (Reuters) - Oil eased to $111 a barrel on Monday as some investors booked profits after last week's gains, although optimism that the world's biggest economies are on a steady recovery path limited the decline.

The crude market rallied last week after U.S. lawmakers reached a last-minute agreement to avert the so-called "fiscal cliff", or tax increases and spending cuts that would have threatened growth in the world's top oil consumer.

Brent crude fell 27 cents to $111.04 a barrel by 1013 GMT, after rising 0.6 percent last week. U.S. crude slipped 29 cents to $92.80 after adding 2.5 percent last week.

"There is a bit of pullback in oil prices after the rally last week. Oil futures had gained quite a bit last week," said Victor Shum, senior partner at IHS Purvin & Gertz in Singapore.

Reports on Friday showed U.S. employers kept up an even pace of hiring in December and the country's services sector expanded briskly. This, as well as earlier data showing expansion in U.S. and Chinese manufacturing, bolstered the outlook for oil demand.

This week's focus for financial markets will be on the European Central Bank. Investors are looking to the central bank's monthly meeting on Thursday to see if it hints at an interest rate cut early this year.

Figures on Monday showed euro zone factory prices fell for the first time in five months in November, pulled down by a slide in the cost of energy and giving the ECB room to consider another interest rate cut.

Investors will also be watching the U.S. Federal Reserve's stance on monetary easing, after top Fed officials and some U.S. economists suggested the central bank might halt its asset purchases this year.

Supply concerns arising from tension and fighting in the Middle East could support oil prices. The United Nations said last week more than 60,000 people have died in Syria's uprising and civil war. (Reporting by Ramya Venugopal and Alex Lawler; editing by Keiron Henderson)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared
People walk in the Wipro campus in Bangalore June 23, 2009. REUTERS/Punit Paranjpe/Files

Wipro Q4 net profit beats estimates, rises 29 percent

Wipro posted a 29 percent rise in its fourth-quarter net profit, beating expectations, helped by increased IT spending by its customers. For the quarter ended March 31, the company said it earned 22.27 billion rupees compared with 17.29 billion rupees a year earlier.  Full Article | Full Coverage 

REUTERS SHOWCASE

Literary Giant Dies

Literary Giant Dies

Nobel winner Garcia Marquez, master of magical realism, dies at 87.  Read 

Election 2014

Election 2014

India holds biggest day of voting with BJP gaining strength  Full Article | Full Coverage 

Insider Trading

Insider Trading

Ex-Goldman director Gupta starts prison term on June 17.  Full Article 

Market Eye

Market Eye

Sensex jumps 351 points, snaps 3-day losing streak  Full Article 

Expansion Plans

Expansion Plans

Reliance Industries, HPCL Mittal plan refinery expansions.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Deal Talk

Deal Talk

Piramal to buy 20 percent stake in Shriram Capital for $334 million.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage