NYMEX crude rebounds in Asia as investors react to sharp drop last week

Crude prices rebounded in early Asia on Monday as investors took advantage of a sharp fall in prices last week to square positions. On the New York Mercantile Exchange, crude oil for delivery in December rose 0.39% to $40.90 a barrel. In Japan, quarter-on-quarter third quarter GDP fell 0.2%, compared to an expected 0.1% drop, while the year-on-year pace slumped 0.8%, compared to a 0.2% drop seen. Earlier in New Zealand, retail sales quarter-on-quarter in the third quarter rose 1.6%, beating an expected 1.3% gain. In the week ahead, investors will be turning their attention to Wednesday’s minutes of the Fed’s latest policy meeting for fresh indications on the prospects of a December rate hike. Market players will also be looking ahead to U.S. data on inflation, building permits and manufacturing activity for further clues on the strength of the economy. Last week, oil prices sank to 11-week lows on Friday, as mostly bearish outlooks for supply and demand and for the global economy remained on investors' minds. On the ICE Futures Exchange in London, Brent oil for January delivery shed 72 cents, or 1.59%, to close the week at $44.47 a barrel on Friday. It earlier fell to $44.16, the weakest level since August 26. For the week, London-traded Brent futures dropped $3.85, or 8.03%, the largest weekly loss since March. In its monthly report for October, the Paris-based International Energy Agency said global crude inventories stood at a record near 3 billion barrels by the end of September, amid record supply in Iraq, Russia and Saudi Arabia. The agency also said global demand growth is forecast to slow to 1.2 million barrels a day in 2016 after surging to 1.8 million barrels a day this year. In its own October monthly report released Thursday, OPEC largely maintained its forecasts for oil demand growth and supply for this year and next. The oil cartel said surplus oil inventories are at the highest level in at least a decade because of increased global production. The report is the last to come before OPEC's meeting in Vienna on December 4. The oil cartel is largely expected to keep production levels steady above 30 million barrels per day, despite ongoing concerns over ample global supplies. Industry research group Baker Hughes (N:N:BHI) said late Friday that the number of rigs drilling for oil in the U.S. increased by 2 last week to 574, the first weekly rise in almost three months. The oil market has been on the defensive in recent months amid uncertainty about how quickly the global glut of crude is set to shrink. Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.