October 7, 2012 / 10:38 PM / 5 years ago

NYMEX-US crude eases towards $89 on global economy concerns

SINGAPORE, Oct 8 (Reuters) - U.S. crude eased towards $89 a barrel on Monday, as concerns over the global economy and Europe's debt crisis offset support from an unexpected drop in U.S. unemployment.

FUNDAMENTALS

* NYMEX crude for November delivery dropped 25 cents to $89.63 a barrel in early Asia trading, after falling nearly $2 the previous session.

* Brent crude fell 32 cents to $111.70 a barrel.

* The U.S. unemployment rate unexpectedly dropped to 7.8 percent in September and reached its lowest level since President Barack Obama took office.

* IMF chief Christine Lagarde praised Gulf oil exporters on Saturday for their help in stabilizing the global economy by managing oil prices, despite complaints by some Western countries that energy costs are still too high.

* Hedge funds and other large speculators cut their bets on higher oil prices for the second straight week, the U.S. Commodity Futures Trading Commission said on Friday.

* Turkey returned fire after Syrian mortar bombs landed in a field in southern Turkey on Saturday, the day after Prime Minister Tayyip Erdogan warned Syria that Turkey would not shy away from war if provoked.

MARKETS NEWS

* The Group of Seven finance ministers, International Monetary Fund and World Bank meet in Tokyo this week against the backdrop of a global economy that shows a glint of stability, with a deluge of Chinese data due in the coming days at best expected to confirm that.

* German Chancellor Angela Merkel will make her first visit to Greece this week since the euro zone debt crisis erupted, in a show of support for Athens after it said it would run out of money at the end of November without fresh international aid.

* A disappointing rebound in U.S. housing continues to trip up the country's overall economic recovery, two influential Federal Reserve officials said on Friday, highlighting a corner of the economy that still frustrates monetary policymakers.

* German industrial orders dropped in August as a slide in domestic demand outweighed an improvement in euro zone contracts, denting hopes that domestic appetite will sustain growth in Europe's largest economy.

DATA/EVENTS

* The following data is expected on Monday:

1000 Germany Industrial output mm Aug (Reporting by Randy Fabi)

0 : 0
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