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Crude oil advances amid Middle-East tensions

Published 09/28/2012, 03:58 AM
Updated 09/28/2012, 04:00 AM
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Investing.com - Crude oil futures climbed on Friday, as ongoing concerns over diplomatic tensions between Israel and Iran lifted prices and ahead of the release of U.S. data later in the day.

On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD92.41 a barrel during European morning trade, climbing 0.59%.

Oil prices rose after Israeli Prime Minister Benjamin Netanyahu told the United Nations on Thursday evening that the world must impose "red lines" on Iran’s uranium enrichment program to prevent it from attaining nuclear weapons.

OPEC’s third-biggest crude producer may be able to build an atomic weapon by next year, Netanyahu told the UN General Assembly.

Meanwhile, investors were eyeing the release of U.S. economic reports, with hopes that an economic recovery may boost fuel demand.

On Thursday, official data showed that the U.S. economy expanded 1.3% in the second quarter, down from a preliminary estimate of 1.7%. Economists had expected the rate of growth to remain unchanged.

A separate report showed that U.S. durable goods orders fell 13.2% in August, the steepest decline since January 2009, compared to expectations for a 5.0% decline.

Another report showed that the number of people who filed for unemployment assistance in the U.S. last week fell to 359,000 from 385,000, compared to expectations for a decrease to 378,000.

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

Meanwhile, the Spanish government announced a crisis budget for 2013, based mostly on spending cuts, in what many analysts see as an effort to pre-empt the likely conditions of an international bailout.

Ministry budgets were slashed by 8.9% for next year and public sector wages frozen for a third year as Prime Minister Mariano Rajoy battles to trim one of the euro zone's biggest deficits.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery advanced 0.61% to trade at USD112.70 a barrel, with the spread between the Brent and crude contracts standing at USD20.29 a barrel.


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