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Crude oil edges higher, eyes on Jackson Hole

Published 08/31/2012, 03:00 AM
Updated 08/31/2012, 03:01 AM
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Investing.com - Crude oil futures edged higher on Friday, as markets remained focused on a highly anticipated speech by Federal Reserve Chairman Ben Bernanke later in the day.

On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD94.81 a barrel during European morning trade, adding 0.20%.

Investors remained cautious ahead of Bernanke’s speech at a symposium in Jackson Hole, Wyoming, amid ongoing speculation over how close the Fed may be to implementing more economic stimulus measures.

Official data showed on Thursday that the number of people who filed for unemployment assistance in the U.S. last week held steady at 374,000, compared to expectations for a decline of 4,000 to 370,000.

A separate report showed that personal income in the U.S. rose by 0.3% in July, matching forecasts, after rising by a revised 0.3% in June. Personal spending rose 0.4%, in line with expectations after a flat reading in June.

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

Meanwhile, companies including BP and Chevron said they are assessing offshore facilities before returning workers, as Hurricane Isaac was downgraded to a tropical depression after pounding the New Orleans area on the seventh anniversary of Hurricane Katrina.

The Bureau of Safety and Environmental Enforcement said on Thursday that companies halted 95% of U.S. oil production in the Gulf, which is home to 29% of U.S. oil production.

Four oil refineries on the U.S. Gulf Coast, capable of processing 882,000 barrels a day of crude and representing 5.1% of the country’s capacity, remained shut after Isaac passed.

Separately, citing Iranian Oil Minister Rostam Qasemi, Bloomberg reported earlier that Iran wants global oil prices to rise to USD130 a barrel and is producing as much crude as it did before the U.S. and Europe tightened sanctions on the country's exports.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery rose 0.21% to trade at USD112.89 a barrel, with the spread between the Brent and crude contracts standing at USD18.08 a barrel.


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