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Crude oil futures rise to 7-day high after upbeat U.S. data

Published 11/21/2013, 09:53 AM
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Investing.com - Crude oil futures rose to a seven-day high on Thursday, after stronger-than-expected U.S. economic data eased concerns over the health of the U.S. economy.

On the New York Mercantile Exchange, light sweet crude futures for delivery in January traded at USD94.51 a barrel during U.S. morning trade, up 0.7%.

New York-traded oil futures rose to a session high of USD94.71 a barrel earlier, the strongest level since November 12.

The January contract settled 0.04% lower on Wednesday to end at USD93.85 a barrel.

Oil futures were likely to find support at USD93.22 a barrel, the low from November 19 and resistance at USD95.22 a barrel, the high from November 12.

Oil prices rose to the highest levels of the session after preliminary data showed that U.S. manufacturing activity improved to an eight-month high of 54.3 in November from a reading of 51.8 in October.

A separate report showed that the number of people filing for initial jobless benefits last week fell by 21,000 to a seasonally adjusted 323,000, beating expectations for a decline of 9,000.

Oil prices were mildly lower earlier in the session after data showed that China’s HSBC manufacturing index ticked down to 50.4 in November, from a final reading of 50.9 in October, missing forecasts for a reading of 50.8.

China is the world's second largest oil consumer and manufacturing numbers are used as indicators for fuel demand growth.
 
Elsewhere, on the ICE Futures Exchange, Brent oil futures for January delivery inched up 0.25% to trade at USD108.32 a barrel, with the spread between the Brent and crude contracts standing at USD13.81 a barrel.

Oil traders continued to monitor talks between Iran and six major powers in Geneva aimed at curbing Tehran’s nuclear program and relaxing sanctions against the oil producer.

London-traded Brent prices rallied 1.07% on Wednesday after a U.S. official said it would be "very hard" to get a nuclear agreement this week with Iran.

Trade sanctions slapped on Iran due to its alleged nuclear ambitions have taken out more than one million barrels per day of oil from the global market.

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