Crude oil futures decline with China economy in focus

Investing.com - Crude oil futures were lower on Tuesday, as concerns over the economic outlook in China and the impact on future oil demand prospects dampened the appeal of the commodity.

The Asian nation is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.

On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in March traded at USD94.44 a barrel during European morning trade, down 0.15%.

New York-traded oil futures held in a range between USD93.93 a barrel and USD94.48 a barrel. There was no settlement on the NYMEX on Monday due to the Martin Luther King Jr. Day holiday.

Nymex oil futures were likely to find support at USD92.63 a barrel, the low from January 15 and resistance at USD95.07 a barrel, the high from January 17.

Data on Monday showed that China’s economy expanded at an annual rate of 7.7% in the fourth quarter, down from 7.8% in the three months to September.

A separate report showed that industrial production in China rose by an annualized rate of 9.7% in December, compared to expectations for a 9.8% increase, after a 10% gain in the previous month.

The next slice of Chinese economic data to come out will be the HSBC preliminary purchasing managers' index for January, due on Thursday.

Data from the Commodities Futures Trading Commission released last Friday showed that hedge funds and money managers reduced their bullish bets in oil futures in the week ending January 14.

Net longs totaled 229,722 contracts as of last week, compared to 247,177 in the preceding week.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for March delivery added 0.55% to trade at USD106.94 a barrel, while the spread between the Brent and U.S. crude contracts stood at USD12.50 a barrel.