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Oil retreats in Asia after cliff deal, mixed U.S. data

Published 01/02/2013, 08:33 PM
Updated 01/02/2013, 08:35 PM
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Investing.com - After surging 1.19% to settle at at USD92.91 a barrel during Wednesday’s U.S. session, oil futures drifted lower in the early part of Thursday’s Asian session as traders may have been focusing more some mixed data points out of the U.S. rather than fiscal cliff-related ebullience.

On the New York Mercantile Exchange, light, sweet crude futures for February delivery slipped 0.43% to USD92.72 per barrel in Asian trading Thursday. Oil’s decline may also be a sign that futures, which were flirting with three-month highs after the U.S. session, rose too much too rapidly and that traders are looking to lock in some profits.

Gold, silver oil and other riskier assets jumped during Wednesday’s U.S. session, buoyed by positive fiscal cliff news. On Tuesday night, the U.S. House of Representatives ratified a fiscal cliff bill previously approved by the Senate that will raise taxes on American households earning over USD450,000 per year. Those taxes increases are designed to increase government revenue by USD620 billion over 10 years.

However, the two U.S. data points released during the session were mixed. In U.S. economic news, the Institute for Supply Management said its manufacturing index rose to 50.7 in December from 49.5 in November. Readings above 50 signal expansion. ISM's employment index rose to 52.7 from 48.4 in November.

The Commerce Department said construction spending fell 0.3% in November. The October number was revised lower to an increase of 0.7% from an initial reading of growth of 1.4%. The November decline is the first since March 2012.

Oil traders will now turn their attention to the U.S. weekly jobless claims report due out later today and the December non-farm payroll report due to be delivered by the Labor Department on Friday.

Elsewhere, Brent futures for February deliver fell 0.18% to USD111.19 per barrel on the ICE Futures Exchange.


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