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Crude oil futures slide lower, U.S. data in focus

Published 08/30/2013, 04:17 AM
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Investing.com - Crude oil futures were lower on Friday, as markets eyed the release of U.S. data later in the day, after positive U.S. economic reports on Thursday indicated that the recovery is on track.

On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD108.07 a barrel during European morning trade, down 0.67%.

The October contract settled 1.18% lower, at USD108.80 a barrel on Thursday.

Oil futures were likely to find support at USD106.78 a barrel, Thursday's low and resistance at USD110.03 a barrel, Thursday's high.

On Thursday, the Commerce Department said gross domestic product increased at a seasonally adjusted annual rate of 2.5% in the three months to June, above expectations for growth of 2.2% and up from a preliminary estimate of 1.7%.

A separate report from the U.S. Department of Labor showed that the number of individuals who filed for unemployment assistance fell by 6,000 to a seasonally adjusted 331,000 last week, compared to forecasts for a decline of 5,000.

The stronger-than-expected data added to speculation the Fed could taper down its bond purchases at its next policy meeting amid increasing signs of a recovery in the U.S. economy.

The central bank is scheduled to meet September 17-18 to review the economy and assess policy.

The possibility that the Fed could scale back its stimulus program helped buoy the U.S. dollar.

Separately, investors remained cautious amid concerns over an impending U.S.-led military strike against Syria, following the alleged use of chemical weapons.

On Wednesday, President Barack Obama said the U.S. has concluded that the Syrian government carried out a chemical weapons attack near Damascus, but added that he had not yet made a decision about whether to intervene militarily.

While Syria is not a major oil producer, investors fear that the two-year-old civil war could spill over to affect oil supplies in nearby countries.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery eased 0.02% to trade at USD115.14 a barrel, with the spread between the Brent and crude contracts standing at USD7.07 a barrel.


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