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Crude dips as U.S. economic growth figures disappoint

Published 02/28/2013, 12:35 PM
Updated 02/28/2013, 12:36 PM
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Investing.com - Oil prices dipped in U.S. trading on Thursday after official data revealed that the U.S. economy expanded somewhat less than expected during the final three months of 2012.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at USD92.53 a barrel on Thursday, down 0.25%, off from a session high of USD93.17 and up from an earlier session low of USD92.20.

The Commerce Department reported earlier that the country's fourth-quarter gross domestic product was revised up to 0.1% from an initial estimate for a 0.1% contraction, though the figure missed expectations for 0.5% growth.

The data sent oil prices falling on sentiment that the country will need less fuels and energy going forward, though losses were limited after other economic indicators beat expectations.

The Department of Labor reported that weekly initial jobless claims dropped 22,000 last week to a seasonally adjusted 344,000, compared to expectations for a decline of 6,000 to 360,000.

Elsewhere, manufacturing activity in the Chicago-area expanded faster than expected in February, hitting an 11-month high, according to industry data.

The MNI Chicago purchasing managers’ index rose to a seasonally adjusted 56.8 in February from a reading of 55.6 in January, beating out analysts' calls for a February reading of 54.3.

A reading above 50.0 indicates expansion, while below indicates contraction.
Supply data released earlier this week curbed losses as well.

The U.S. Energy Information Administration reported on Wednesday that crude stockpiles rose by 1.130 million barrels last week, well below a analysts' calls for a gain of about 2.413 million barrels.

During the week before, crude oil inventories rose by 4.143 million barrels.
Gasoline inventories, meanwhile, fell by 1.857 million barrels compared with forecasts for a decline of 900,000 barrels.

Elsewhere on the ICE Futures Exchange, Brent oil futures for April delivery were up 0.42% at USD112.34 a barrel, up USD19.81 from its U.S. counterpart.






 

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