MTECHTIPS;-Crude oil futures trim gains ahead of ISM, stimulus hopes supportCrude oil futures came off the highest levels of the session during U.S. morning hours on Tuesday, as traders looked ahead to the U.S. Institute for Supply Management’s closely watched report on manufacturing activity later in the day.Hopes for fresh action by the European Central Bank further supported market sentiment, ahead of the central bank’s policy meeting on Thursday. On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD96.54 a barrel during U.S. morning trade, easing up 0.1%. Earlier in the day, prices rose by as much as 0.9% to trade at a session high of USD97.36 a barrel, which was the strongest level since August 27.Oil traders were looking ahead to the U.S. Institute for Supply Management’s closely watched report on manufacturing activity later in the day, as well as Friday’s crucial non-farm payrolls data.The ISM, along with the jobs data, is key to gauging the probability of further easing by the U.S. central bank at its next policy meeting beginning September 12.The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand. Oil futures were higher earlier in the session as market sentiment improved after ECB President Mario Draghi indicated on Monday that he would be comfortable buying bonds with maturities of up to about three years, saying that it would not constitute state financing.At its policy meeting on Thursday, the ECB is expected to announce the details of a long awaited debt-buying program designed to help ease funding pressures for indebted euro zone countries.Prices also drew support from growing speculation the Federal Reserve was moving closer to stimulate growth in the U.S. economy, following a speech by Fed Chairman Ben Bernanke last Friday. Speaking at the Fed’s annual symposium in Jackson Hole, Wyoming, Bernanke said the Fed would act as needed to strengthen the U.S. economic recovery, but stopped short of indicating that a fresh round of stimulus is imminent.
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