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Crude oil edges lower but remains supported

Published 10/19/2012, 03:27 AM
Updated 10/19/2012, 03:28 AM
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Investing.com - Crude oil futures edged lower on Friday, as Thursday's mixed U.S. economic reports weighed on investor confidence, although a supply disruption in the Midwest supported prices.

On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD92.44 a barrel during European morning trade, slipping 0.08%.

On Thursday, the Federal Reserve Bank of Philadelphia said that its manufacturing index improved by 7.6 points to 5.7 in October from September’s reading of minus 1.9.

Analysts had expected the index to improve by 2.9 points to a reading of 1.0 in October.

The report came after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week rose by 46,000 to a seasonally adjusted 388,000, compared to expectations for an increase of 23,000 to 365,000.

The previous week’s figure was revised up to 342,000 from a previously reported 339,000, which was the lowest reading since February 2008.

But oil prices remained supported after TransCanada shut the Keystone pipeline for repairs, saying it found a "small anomaly" in a section running from Missouri to Illinois.

In addition, government data this week showed improving U.S. crude demand is being met by increased supplies.

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

Separately, investors were looking ahead to a second day of talks at a European Union summit, although no major announcements on Spain or Greece were expected.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery eased 0.02% to trade at USD112.43 a barrel, with the spread between the Brent and crude contracts standing at USD19.99 a barrel.


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