Crude oil futures extended gains in the Asia electronic session today as the China manufacturing Purchasing Managers' Index came in slightly stronger than the preliminary reading, printing at 50.5.
Over the weekend, the government-sponsored version of the China manufacturing PMI for November came in at 50.6, up from 50.2 in October.
Light sweet crude futures for delivery in January are trading up 28 cents at $ 89.77 per barrel. On Friday, it rose 1% to settle at $88.95 a barrel by close of trade at a two-week top, as hopes for an agreement to avoid the U.S. fiscal cliff supported market sentiment.
Markets participants continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1. There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the four weeks left before the January 1 deadline.
In the coming week, investors will be looking ahead to Friday’s highly anticipated data on U.S. nonfarm payrolls, as investors attempt to gauge the strength of the country’s economic recovery. Policy decisions by the European Central Bank and the Bank of England will also be closely watched.
MCX December crude oil futures may open today’s session near Rs 4870 levels with resistance near Rs 4900 levels.
