Crude Oil Falls on Chinese Demand Worries

December Crude Oil prices fell early on Monday after weaker than expected Chinese factory data raised worries about energy demand. Also pressuring the market was data showing record high Russian crude output.  

China’s factory activity fell for an eighth month in October, a survey showed, pointed at continued sluggishness in the world’s second-largest economy. Russia reported that its October oil production hit a post-Soviet record of 10.78 barrels a day.

Gold fell to a four-week low on Monday, extending the losses triggered by last week’s hawkish Federal Reserve monetary policy statement. The drop in prices represents trader concerns about an earlier than expected rate hike by the central bank.

The EUR/USD was up slightly on Monday after comments from two members of the European Central Bank’s governing council lowered expectations for increasing its bond-purchase program next month.

Ewald Nowotny, president of the National Bank of Austria, said in a newspaper interview published on Monday that while the ECB is right to consider adding to its bond buying to boost inflation, it should think very carefully before doing so. Nowotny added that there had been “no decision,” only discussions on the matter and that he would “advise more towards caution and a steady-hand policy.”

ECB President Mario Draghi appeared to have softened his stance by saying that more stimulus in December was an open question. In late October, he softened extremely dovish, talking about additional stimulus and slashing interest rates.

In other news today, Euro Zone Final Manufacturing PMI came in slightly better than estimated at 52.3 versus 52.0.

U.K. Manufacturing PMI was strong at 55.5, up from 51.8 and higher than the 51.3 estimate.

U.S. ISM Manufacturing PMI was 50.1. Hovering close to a contraction. Construction spending was up 0.6% versus a 0.5% estimate.

Volume and volatility could be light this week because of a number of Fed members are scheduled to speak, the Bank of England has a meeting and the U.S. will release fresh Non-Farm Payrolls data on Friday.