Forexpros – Crude oil futures turned lower on Monday, as market sentiment was hit after the European Central Bank dismissed reports that that it may set a cap on peripheral euro zone bond yields.
On the New York Mercantile Exchange, light sweet crude futures for delivery in September traded at USD95.69 a barrel during U.S. morning trade, down 0.36%.
Risk appetite found support after German magazine Der Spiegel reported that the ECB may set an interest rate threshold on purchases of euro-area sovereign debt at its next policy meeting in September, beyond which its bond buying program would be activated.
However, the ECB dismissed the report, saying it was “absolutely misleading” to report on decisions that have not yet been taken and added that it would act “strictly within its mandate”.
Investors were looking ahead to a series of euro zone meetings later in the week to discuss measures to ease the debt crisis.
Luxemburg Prime Minister Jean-Claude Juncker, who also heads the group of euro zone finance ministers, was to hold talks with Greek Prime Minister Antonis Samaras on Wednesday, to discuss a two-year extension of the country’s economic reform program.
Investors were looking ahead to the minutes of the Federal Reserve’s August policy meeting later in the week, amid speculation over how close the U.S. central bank may be to implementing another round of stimulus measures.
Data on Friday showed that U.S. consumer sentiment rose to its highest level in three months in August, while the Conference Board reported that its index of leading U.S. indicators rose more-than-expected in July.
The data came after better-than-expected U.S. retail sales and industrial production data early last week indicated that the economy may be stabilizing and tempered expectations for another round of quantitative easing by the Fed.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Renewed fears over escalating violence in Syria and lingering tensions between Iran and the West have also been supporting prices in recent sessions.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery were down 0.29% to trade at USD113.33 a barrel, with the spread between the Brent and crude contracts standing at USD17.64 a barrel.
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