Inside Futures: Barchart Morning Call

“Jan crude oil prices this morning are up +88 cents a barrel and Jan gasoline is +6.61 cents per gallon. Crude oil and gasoline prices yesterday settled lower for the first day in five after weekly U.S. jobless claims unexpectedly rose and Chinese manufacturing contracted for the first time in 2-3/4 years, signaling an economic slowdown: CLF12 -$0.16, RBF12 -0.19. Bearish factors included (1) the larger-than-expected decline in the Nov China PMI manufacturing which contracted for the first time since Feb 2009 and indicates reduced fuel demand and consumption in the world’s second-largest crude consumer, (2) the unexpected increase in weekly U.S. unemployment claims, which may slow economic growth and fuel demand, and (3) data from Poten & Partners that shows Libyan crude exports may rise 22% this week to 3.3 million barrels, increasing global crude supplies. Bullish factors included (1) the weaker dollar, which encourages investment demand for commodities and (2) the stronger-than-expected Nov ISM manufacturing index which expanded at its fastest pace in 5 months and indicates strong fuel consumption.”