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Crude extends losses on U.S. housing data, quarterly earnings

Published 10/21/2012, 08:02 PM
Updated 10/21/2012, 08:03 PM
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Investing.com - Crude oil futures extended Friday's losses into Monday as investors avoided the commodity after industry data revealed existing homes sales declined in the U.S. last month.

Weak corporate earnings pushed oil prices down also, further stoking market worries that a lackluster U.S. economy will need less fuels and energy to operate.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at USD89.91 a barrel on Monday, down 0.59%, off from a session high of USD89.93 and up from an earlier session low of USD89.89.

U.S. existing home sales in September fell in line with expectations, industry data revealed on Friday.

In a report, the National Association of Realtors said that home sales fell 1.7% to 4.75 million from 4.83 million in August, whose figure was revised up from 4.82 million.

Analysts had expected existing home sales to fall to 4.75 million last month, though crude fell anyway on sentiments the U.S. economy faces strong headwinds.

Earnings fueled the risk-off trading session even more.

Microsoft reported last week that its third-quarter net income fell 22% to USD4.47 billion, which missed expectations, while revenue fell 8% on year to USD16.01 billion.

General Electric, meanwhile, reported earlier that its third-quarter net income rose 8% to USD3.49 billion, while revenue rose 3% to USD36.35, missing market expectations.

Search giant Google released earnings earlier than planned late Thursday, which sparked confusion, and missed estimates as well.

The company reported revenue of USD14.10 billion, up 45% on year, though net income came to USD2.18 billion, down 20% on year and below expectations.

Fast-food giant McDonald's quarterly earnings fell 3.3% to USD1.46 billion, while revenue was basically flat at USD7.2 billion

On the ICE Futures Exchange, Brent oil futures for December delivery were down 0.55% and trading at USD109.53  a barrel, up USD19.62 from its U.S. counterpart.








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