Oil fell to below $82 today as investors, anxious about the form and scale of an expected monetary easing by the US Federal Reserve next week, took profits at the end of a month of commodity price gains.
US crude for December fell 42 cents to $81.76 a barrel, little changed from its close last Friday. ICE Brent fell 32 cents to $83.27.
Prices in October traded mostly between $80 and $85, up from between $72 and $80 in September, as expectations grew that the Fed would embark on a fresh round of bond purchases known as quantitative easing to inject funds into a flagging economy.
Top oil consumer the United States is expected to show a 2 per cent increase in third-quarter GDP growth, up from 1.7 per cent in the second, due to higher consumer spending, a Reuters poll showed.
New claims for US unemployment benefits unexpectedly fell to a three-month low last week, but the underlying trend still points to labour market stagnation.
Japanese factory output fell for the fourth straight month in September, the longest streak of declines in more than a year, adding to signs the economy is losing momentum as slowing export growth and a strong yen bite.
Core consumer prices also marked their 19th straight month of annual declines in September and household spending fell from August, underscoring how sluggish consumption was keeping Japan mired in grinding deflation.
And in South Korea, industrial output in September shrank for a second consecutive month, data showed, missing market expectations and adding to concerns about the slowing global demand.
The US dollar found a steadier footing against major currencies today, a day after posting its biggest fall in over a week as a fickle market turned its attention to looming US growth data.
The inverse correlation between the dollar and the price of crude has weakened over the past two days after reaching its strongest levels in 14 months earlier this week.
Asian stocks slipped today, led by Japan, on signs of sluggish consumer electronics demand, while the bruised dollar steadied, with dealers focused on how upcoming economic data would impact views on a Fed meeting next week.
The world's biggest oil companies, Exxon Mobil and Royal Dutch Shell, reported sharply higher third-quarter profits yesterday, beating analysts' forecasts, as rising energy demand drove up oil and gas prices and fattened refinery margins.
Reuters