Oil hovers near $77 ahead of US economic reports

[November 02, 2009]  SINGAPORE (AP) -- Oil prices hovered near $77 a barrel Monday in Asia after a big fall the previous trading session as investors eyed upcoming figures on the U.S. economy and a volatile dollar.

Benchmark crude for December delivery was down 11 cents to $76.89 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange.

The contract fell $2.87 to settle at $77.00 on Friday as the dollar gained and stock markets dropped on news U.S. consumer spending and confidence had fallen in September.

Investors will be looking to a slew of economic indicators this week for further clues about the strength of the U.S. economic recovery. The Labor Department's October employment report will likely be the most closely watched report, but data on manufacturing, services and home sales could also move markets.

The Federal Reserve will also comment after a two-day meeting on interest rate policy.

Oil has slumped from its 2009 high of $82 a barrel last month as the dollar reversed some of its earlier losses. The euro rose to $1.4757 in Asian trading Monday from $1.4714 on Friday while the dollar rose to 90.15 yen from 89.67.

"(Oil) prices may not retract too sharply, but the balloon of irrational exuberance has been, at least temporarily, deflated," energy consultancy The Schork Group said in a report Monday.

Investors will also be paying attention to third quarter corporate earnings results this week. Ford Motor Co., Cisco Systems Inc., Kraft Foods Inc., Marathon Oil Corp., Starbucks Corp. and Time Warner Inc. are scheduled to report.

In other Nymex trading, heating oil rose 1.08 cents to $2.02 a gallon. Gasoline for December delivery gained 0.45 cent to $1.96 a gallon. Natural gas for December delivery jumped 4.3 cents to $5.05 per 1,000 cubic feet.

In London, Brent crude for December delivery was flat at $75.20 on the ICE Futures exchange.

[Associated Press; By ALEX KENNEDY]

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