NYMEX crude gains in Asia with focus on China, Europe growth prospects

 Crude oil inched higher in early Asia on Monday as investors focused on prospects for growth-driven demand in China and Europe in data sets later this week.

On the New York Mercantile Exchange, crude oil for delivery in November rose 0.14% to $45.09 a barrel.

Last week, crude oil futures fell sharply on Friday, as the Federal Reserve’s downbeat assessment about the state of the global economy hurt investor sentiment.

The Fed left short-term interest rates unchanged on Thursday, amid concerns over soft inflation and the effects of recent market volatility on the U.S. economy.

"Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term," the FOMC said in a statement.

The central bank added that it wanted to see "some further improvement in the labor market," and be "reasonably confident" that inflation will increase before hiking rates.

The Fed’s concerns over the uncertain outlook for global growth rattled financial markets and pressured risk-sensitive assets lower on Friday.

On the ICE Futures Exchange in London, Brent oil for November delivery tumbled $1.61, or 3.28%, to close the week at $47.47 a barrel.

Industry research group Baker Hughes (NYSE:NYSE:BHI) said late Friday that the number of rigs drilling for oil in the U.S. decreased by eight last week to 644, the third straight weekly decline.

In the week ahead, investors will be turning their attention to Wednesday’s index of manufacturing activity from China and surveys on private sector activity from the euro zone for a fresh indication on the strength of the global economy.

Market players will also be focusing on U.S. durable goods data as well as reports on U.S. home sales for further indications on the strength of the economy and the likelihood of a near-term interest rate hike.

On Monday, the U.S. is to release a report on existing home sales.