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Crude oil edges higher ahead of U.S. data

Published 12/07/2012, 03:33 AM
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Investing.com - Crude oil futures edged higher, as investors eyed the release of U.S. employment report after positive jobless claims data on Thursday, altough downbeat comments by European Central Bank President Mario Draghi weighed.

On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD86.40 a barrel during European morning trade, adding 0.16%.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending December 1 fell by 25,000 to a seasonally adjusted 370,000, compared to expectations for a decline of 15,000 to 380,000.

Sentiment found some support after U.S. President Barack Obama said that a deal to avert the so-called fiscal cliff of year-end tax hikes and spending cuts was possible in "about a week" if Republicans compromise on taxes.

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

But markets were jittery after ECB President Draghi on Thursday said that risks to the outlook remain weighted to the downside. 

Policymakers now expect 2012 gross domestic product to shrink between 0.4% and 0.6%, while GDP is expected to come in between a 0.9% contraction and growth of 0.3% in 2013.

In September, the ECB had forecast 2013 GDP to range between a contraction of 0.4% and growth of 1.4%.

Draghi’s comments came after the ECB left rates on hold at a record low 0.75% earlier, in a widely anticipated decision.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery edged up 0.13% to trade at USD107.14 a barrel, with the spread between the Brent and crude contracts standing at USD20.74 a barrel.


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