Crude Heads For Another Weekly Gain

Crude oil weakened slightly on Friday but is heading for its first weekly gain in 10 after OPEC cut crude shipments by 0.9% this month and the U.S. jobless claims were less than expected last week showing steady improvement in job conditions in the world’s largest oil consumer.

– Crude oil is slightly lower as of this writing trading around $ 97.25 with the opening at $97.29.

– The highest for crude as of this writing is at $97.45 and the lowest is at $97.23.

– Crude finds on the short term support at $97.00 then at 96.50 and resistance at $98.00 then at $98.50.

“It is clear a better global growth scenario is emerging and being priced into markets generally and oil in particular . We had further evidence with the improvement in jobless claims in the U.S. It just adds to that broader, better demand scenario”, said Michael McCarthy from CMC Markets in Sydney.

However, the disappointing eurozone data revived concerns about growth in the region.

Contractions in the eurozone deepened during the fourth quarter by the most since 2009 worsening the outlook for oil demand.

- Brent is trading as of this writing around the $ 117.83 after falling 0.14%.

- Brent is heading for its first weekly loss in five following the eurozone’s disappointing data.

Crude rose on Thursday to the highest of $97.68 as prices found support from the renewed worries over Iran`s nuclear program and the rising tensions in the Middle East . Syria`s civil unrest continues to worsen adding to worries over supply.

Meanwhile, talks between Iran and the United Nations nuclear inspectors appear to have failed . UN nuclear inspectors returned on Thursday from Tehran with no deal over the nation’s nuclear program and no date for a new meeting.

“I think the reality is setting in that there are a lot of roadlocks still ahead. But prices will still stay supported because of the geo-political risk ”, said Tony Hunan from Mitsubishi Corp in Tokyo.

- Natural gas is trading as of this writing at $3.159 per 1,000 cubic feet after falling 0.13%.

- Heating oil is trading at $ 3.2234 after falling 0.01%.

Moreover, as the weakening U.S. dollar and the rising euro are giving support to the energy market, gains may be limited as some inventors are closing their positions ahead of the weekend. A weaker dollar pushes oil prices higher by making crude less expensive.

- The dollar index is trading as of this writing around 80.22 while the euro is trading around 1.3385 .

While caution is rising ahead of key data today, eyes are turning to the G20 meeting that may throw more light on the outlook for the global economy. A positive tone from G20 may give an upside push to oil prices on Friday.

The eurozone will release today its trade balance numbers for December, UK will release its retail sales for January while the U.S. will release its consumer confidence as well as the manufacturing and industrial production numbers for January.

Finally, gasoline price found support on Friday from concerns about supply. Markets worry that gasoline supplies in the United States may fall as refineries cut operating rates to perform maintenance.

- Gasoline is trading as of this writing at $ 3.1342 a gallon after rising 0.56%.