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Profit takers hit crude oil prior to U.S. economic data

Published 08/17/2012, 07:15 AM
Updated 08/17/2012, 07:16 AM
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Investing.com - Crude oil futures dropped on Friday as profit takers hit the commodity in the face of pending U.S, data and central bank easing speculation.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in September traded at USD95.16 a barrel during Friday’s session, dropping 0.47%.

The oil market became nervous after a string of U.S. data on Thursday painted a mixed picture of the country's economic recovery. 

Official data showed that U.S. building permits issued in July rose 6.8% to 0.812 million, compared to expectations for an increase of 1.2% to 0.770 million.

However, a separate report showed that manufacturing activity in the Philadelphia-region remained in contraction territory for the fourth straight month in August, while the Department of Labor said unemployment claims in the U.S. last week rose to a four-week high.

The data came after a report showed earlier in the week that U.S. retail sales snapped four successive months of declines in July.

Investors were eyeing the release of additional U.S. data on consumer sentiment later in the day, for further indications on the strength of the nation's recovery.

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

Renewed fears over escalating violence in Syria and lingering tensions between Iran and the West have also been supporting prices in recent sessions.

Reuters reported on Thursday that the White House is considering the potential release of oil reserves to dampen rising gasoline prices and prevent high energy costs from undermining the success of Iran sanctions. 

Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery retreated 1% to trade at USD114.08 a barrel, with the spread between the Brent and crude contracts standing at USD18.85 a barrel.

On Thursday, London-traded Brent prices touched USD114.83 a barrel, the highest since May 4.

Brent prices have been well-supported in recent weeks, rallying nearly 22% from the lows touched in June, amid growing concerns over tightening supplies from the North Sea region and following the launch of Western-led sanctions targeting Iranian oil exports on July 1



 

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