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U.S. oil futures edge higher after upbeat U.S. retail sales data

Published 12/12/2013, 09:13 AM
U.S. oil futures edge higher after upbeat U.S. retail sales data
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Investing.com - U.S. oil futures edged higher to re-approach the previous session’s six-week high on Thursday, after stronger-than-expected U.S. retail sales data boosted optimism over the health of the economy.

On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in January traded at USD98.02 a barrel during U.S. morning trade, up 0.6%. New York-traded oil futures traded in a range between USD97.32 a barrel and USD98.17 a barrel.

Nymex oil futures were likely to find support at USD96.31 a barrel, the low from December 4 and resistance at USD98.75 a barrel, the high from December 11.

The January contract rose to USD98.75 a barrel on Wednesday, the highest since October 22, before turning lower to settle down 1.09% at USD97.44 a barrel.

The U.S. Department of Commerce said in a report earlier that U.S. retail sales rose 0.7% in November, above expectations for a 0.6% increase. Core retail sales increased 0.4%, beating forecasts for a 0.2% gain.

Separately, the Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week rose to a nine-week high of 368,000, compared to expectations for an increase to 320,000 from the previous week’s revised total of 300,000.

The mixed batch of U.S. economic data did little to alter expectations that the Federal Reserve will start to scale back its stimulus program next week. The central bank is scheduled to meet December 17-18 to review the economy and assess monetary policy.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for January delivery was little changed to trade at USD109.73 a barrel, while the spread between the Brent and U.S. crude contracts stood at USD11.71 a barrel.

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