December crude oil traded higher during the initial morning hours, drafting support from newly formed governments in Italy and Greece and reports out of China indicating increased borrowing activity last month. The easy policy stance in China was viewed as a force stoking demand for commodities like crude oil. It is possible that the crude oil market also garnered a lift on comments from Algeria's energy minister that saw global oil demand slightly higher, with firm Chinese and Indian demand offsetting reduced demand in parts of Europe. However, the positive early tone turned negative with disappointing European industrial production figures that suggested the region could be slipping into a recession.
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