Black Friday Sale! Save huge on InvestingProGet up to 60% off

Crude oil's rally hit by profit takers

Published 10/05/2012, 07:11 AM
Updated 10/05/2012, 07:13 AM
LCO
-
CL
-
Investing.com - Crude oil futures traded lower Friday in late European trade as profit takers hit the commodity after a sharp rally Thursday, triggered by bullish comments from European Central Bank President Mario Draghi and amid ongoing tensions in the Middle East. 

On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD90.83 a barrel during European afternoon trade, dropping 0.96%. 

Oil prices jumped on Thursday, after ECB President Mario Draghi reiterated that the central bank was ready to start purchasing the debt of troubled euro zone states. 

Speaking at the ECB’s post-policy meeting press conference earlier in the day, Draghi said the central bank was ready to undertake Outright Monetary Transactions when the prerequisites are in place.

Draghi reiterated that the central bank was acting strictly within its mandate in undertaking a bond buying program via OMT’s.

The ECB left rates on hold at a record low 0.75% earlier, in a widely anticipated decision.

Meanwhile, the minutes of the Federal Reserve's September policy meeting showed that the central bank is moving toward linking its outlook for near-zero interest rates to specific economic conditions such as a decline in the unemployment rate. 

On Thursday, the Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week rose to 367,000, compared to expectations for an increase of 7,000 to 370,000. 

Investors were eyeing the release of key U.S. jobs data, including the nonfarm payrolls for September, later in the session. 

The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand. 

Separately, oil prices also found support on Thursday after Turkey’s parliament authorized the government to order military action in Syria earlier in the day. A mortar bomb fired across the border Wednesday killed five Turks.

Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2011.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery soared higher by 3.23% to trade at USD111.64 a barrel, with the spread between the Brent and crude contracts standing at USD21.51 a barrel.



 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.