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NYMEX-U.S. crude firms above $94 on data and supply worries

Monday, 2 Dec 2013 | 7:46 PM ET

TOKYO, Dec 3 (Reuters) - U.S. crude rose for the third session in a row on Tuesday, as recent strong industrial data boosted the outlook for demand and worries of lower supplies further lifted sentiment.

FUNDAMENTALS

* NYMEX crude for January delivery was up 29 cents at $94.11 a barrel by 0025 GMT, after settling up $1.10 on Monday, when robust manufacturing data from China and the United States and concerns about Russian crude supplies, supported the contract.

* Investors are closely watching comments from the Organization of the Petroleum Exporting Countries as members gathered in Vienna for the producer group's meeting later this week, where officials are expected to leave their supply limits unchanged for the first half of 2014.

* TransCanada Corp's 700,000 barrel-per-day Cushing-to-Port Arthur, Texas, pipeline, the southern leg of the controversial Keystone XL pipeline, will begin service on Jan. 3, the company said in a tariff filed with the Federal Energy Regulatory Commission late on Monday.

* U.S. commercial crude oil inventories and distillate stockpiles were forecast to have fallen last week, with crude stocks for the week ended Nov. 29 down by an average of 600,000 barrels, a Reuters poll of analysts showed on Monday.

MARKETS NEWS

* Asian shares slipped and the dollar firmed on Tuesday as an unexpectedly strong U.S. factory activity gauge bolstered expectations the Federal Reserve will soon reduce its massive stimulus, while the yen tumbled on speculation of further central bank easing.

* U.S. stocks closed lower on Monday, with investors unable to find new reasons to keep pushing shares higher after eight straight weeks of gains, while the mining sector slid alongside sharp drops in precious metals prices.

* The 19-commodity Thomson Reuters/CoreCommodity CRB index inched down less than 0.1 percent on Monday, largely weighed down by declines in precious metals.

DATA/EVENTS

* The following data is expected on Tuesday:

0100 China Official non-manufacturing PMI

1000 Euro zone Producer prices

1245 U.S. Weekly ICSC chain store sales

1355 U.S. Redbook weekly retail sales

1445 U.S. ISM-New York business activity

1500 U.S. IBD/TIPP consumer confidence

(Reporting by James Topham; Editing by Ed Davies)