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Crude oil futures rise as markets wait for U.S. data

Published 10/18/2013, 03:04 AM
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Investing.com - Crude oil futures edged higher during early European trading hours on Friday, as investors turned to next week's U.S. data amid growing concerns over the consequences of the two-week U.S. government shutdown.

On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD100.80 a barrel during European morning trade, up 0.16%.

The November contract settled down 1.58% at USD100.67 a barrel on Thursday.

Oil futures were likely to find support at USD100.06 a barrel, Thursday's low and resistance at USD102.31 a barrel, Thursday's high.

Oil investors were waiting for upcoming U.S. economic data releases, which had been delayed due to the government shutdown, to determine the impact of the debt crisis on the demand outlook and on the Federal Reserve's stimulus program.

On Thursday, the U.S. Congress passed a bill to reopen the government and raise the debt ceiling, just hours ahead of a deadline to avert a debt sovereign debt default.

The deal will fund the government until January 15 and raise the government borrowing limit until February 7, but the possibility of another debt crisis down the road weighed on sentiment, as the temporary solution does not resolve the underlying budgetary issues dividing Republicans and Democrats.

Oil prices found support after official data on Friday showed that China gross domestic product grew by 7.8% in the third quarter, in line with expectations and up from 7.5% in the three months to June.

The data eased concerns over the strength of the recovery in the world's second-largest economy.

Separately, traders continued to monitor talks over Iran’s nuclear program between Western diplomats and Tehran, amid speculation that sanctions on Iranian oil exports may be eased.

Western-led sanctions on Tehran have cut Iranian oil exports by more than 1 million barrels per day.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery rose 0.15% to trade at USD109.28 a barrel, with the spread between the Brent and crude contracts standing at USD8.48 a barrel.


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