Forexpros – Crude oil futures edged lower in European morning trade on Monday, as investors remained cautious ahead of global central bank meetings later in the week, amid speculation over the possibility of further easing measures.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in September traded at USD90.08 a barrel during European morning trade, down 0.07%.
Data on Friday showed that U.S. economic growth came in broadly in line with expectations in the second quarter, tempering expectations for a third round of quantitative easing measures from the Federal Reserve at its policy meeting on Wednesday.
The Commerce Department said U.S. gross domestic product expanded by 1.5% in the three months to June, after growing by an upwardly revised 2.0% in the first quarter.
Investors have interpreted signs of slowing U.S. economic growth as increasing the likelihood that the Federal Reserve will implement more stimulus measures to shore up the economic recovery.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Investors were also keenly awaiting the outcome of Thursday’s European Central Bank policy meeting after the bank’s head Mario Draghi pledged last week to do whatever is necessary to preserve the euro.
The remarks fuelled expectations that the ECB is set to announce fresh policy measures to stem the long running crisis in the euro zone, despite a lack of concrete details.
Oil prices remained supported by ongoing tensions in the Middle East, as intense fighting continued in Syria and threatened to spill over into neighboring countries, including major oil producers.
Later Monday, U.S. Treasury Secretary Timothy Geithner was to meet with German Finance Minister Wolfgang Schaeuble and Mario Draghi to discuss the European, U.S. and global economies.
On the London based ICE Futures Exchange, Brent oil futures for September delivery fell 0.51% to trade at USD105.92 a barrel, with the spread between the Brent and crude contracts standing at USD15.84.
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