Investing.com - Crude oil futures were largely unchanged in rangebound trade during European morning hours on Thursday, holding above USD80-per-barrel as renewed optimism in the U.S. economic recovery supported sentiment ahead of a key European Union summit scheduled to begin later in the day in Brussels.
On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded at USD80.28 a barrel during European morning trade, easing up 0.1%.
The August contract traded in between a tight range of USD80.69 a barrel, the daily high and a session low of USD80.22 a barrel. Prices hit a one-week high of USD80.84 on Wednesday.
Oil futures rallied 1.1% on Wednesday after a report by the National Association of Realtors showed that pending home sales jumped 5.9% in May, blowing past expectations for a 1% increase, to match a two-year high hit in March.
Another report showed that U.S. durable goods orders rose by a seasonally adjusted 1.1% in May, beating expectations for a 0.4% increase, indicating that the manufacturing sector is stabilizing following a 0.2% drop in May.
Meanwhile, the U.S. Energy Department said in its weekly report that crude oil inventories declined by 0.1 million barrels last week to a total of 387.2 million barrels, just below the highest level since July 1990.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
But gains were kept in check as investors remained cautious ahead of a two-day EU summit due to begin later in the day, amid worries the talks will not result in any effective steps to strengthen fiscal integration and allow the euro zone’s rescue funds to buy government debt.
Hopes that European leaders would make headway on dealing with the debt crisis in the region faded after German Chancellor Angel Merkel reiterated her opposition to the idea of joint euro zone bonds on Wednesday.
Meanwhile, the yield on Spanish 10-year bonds rose to 6.92% in early trade, hovering just below the critical 7% threshold that prompted Greece, Ireland and Portugal to seek international bailouts.
Elsewhere, Italy saw six-month borrowing costs climb to the highest level since December at a debt auction Wednesday, as investor sentiment towards the country continued to deteriorate.
10-year Italian bonds yields climbed to 6.23%, up from 6.20% Wednesday. Italy is offering up to EUR5.5 billion in five- and 10-year debt in a closely watched bond auction later in the session.
Investors fear one or both countries may need a bailout similar to Greece by the fall.
There are worries that the region’s worsening sovereign debt crisis could trigger a broader economic slowdown that would curb demand for oil.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery shed 0.5% to trade at 93.04 a barrel, with the spread between the Brent and crude contracts standing at USD12.76.
Prices fell to as low as USD88.49 a barrel on June 22, which was the lowest since December 20, 2010.
London-traded Brent prices are down nearly 28% since hitting an intraday high of USD128.38 on March 1, as an escalating debt crisis in the euro zone and worries over a deeper-than-expected slowdown in Chinese economic activity dragged prices lower.
On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded at USD80.28 a barrel during European morning trade, easing up 0.1%.
The August contract traded in between a tight range of USD80.69 a barrel, the daily high and a session low of USD80.22 a barrel. Prices hit a one-week high of USD80.84 on Wednesday.
Oil futures rallied 1.1% on Wednesday after a report by the National Association of Realtors showed that pending home sales jumped 5.9% in May, blowing past expectations for a 1% increase, to match a two-year high hit in March.
Another report showed that U.S. durable goods orders rose by a seasonally adjusted 1.1% in May, beating expectations for a 0.4% increase, indicating that the manufacturing sector is stabilizing following a 0.2% drop in May.
Meanwhile, the U.S. Energy Department said in its weekly report that crude oil inventories declined by 0.1 million barrels last week to a total of 387.2 million barrels, just below the highest level since July 1990.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
But gains were kept in check as investors remained cautious ahead of a two-day EU summit due to begin later in the day, amid worries the talks will not result in any effective steps to strengthen fiscal integration and allow the euro zone’s rescue funds to buy government debt.
Hopes that European leaders would make headway on dealing with the debt crisis in the region faded after German Chancellor Angel Merkel reiterated her opposition to the idea of joint euro zone bonds on Wednesday.
Meanwhile, the yield on Spanish 10-year bonds rose to 6.92% in early trade, hovering just below the critical 7% threshold that prompted Greece, Ireland and Portugal to seek international bailouts.
Elsewhere, Italy saw six-month borrowing costs climb to the highest level since December at a debt auction Wednesday, as investor sentiment towards the country continued to deteriorate.
10-year Italian bonds yields climbed to 6.23%, up from 6.20% Wednesday. Italy is offering up to EUR5.5 billion in five- and 10-year debt in a closely watched bond auction later in the session.
Investors fear one or both countries may need a bailout similar to Greece by the fall.
There are worries that the region’s worsening sovereign debt crisis could trigger a broader economic slowdown that would curb demand for oil.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery shed 0.5% to trade at 93.04 a barrel, with the spread between the Brent and crude contracts standing at USD12.76.
Prices fell to as low as USD88.49 a barrel on June 22, which was the lowest since December 20, 2010.
London-traded Brent prices are down nearly 28% since hitting an intraday high of USD128.38 on March 1, as an escalating debt crisis in the euro zone and worries over a deeper-than-expected slowdown in Chinese economic activity dragged prices lower.