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Crude oil edges lower, U.S. concerns linger

Published 11/09/2012, 04:08 AM
Updated 11/09/2012, 04:09 AM
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Investing.com - Crude oil futures edged lower on Friday, amid signs of an economic recovery in China, although concerns over U.S. fiscal policy continued to linger.

On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD84.90 a barrel during European morning trade, slipping 0.18%.

Overall market sentiment continued to be weighed by concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1 unless lawmakers can reach an agreement, which could threaten U.S. and global growth.

But prices found some support after official data earlier showed that industrial production in China rose by 9.6% in October, more than the expected 9.4% increase and following a 9.2% rise the previous month.

Oil prices gained ground on Thursday, after the U.S. Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell to 355,000 last week, from 363,000 the previous week, compared to expectations for an increase to 370,000.

A separate report showed that the U.S trade deficit narrowed to USD41.5 billion in September from a deficit of USD43.8 billion in August, defying expectations for a deficit of USD45.0 billion.

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

Meanwhile, investors remained cautious amid a bleak economic outlook in the euro zone, uncertainty on Greece's aid deal and lack of hints from policymakers on when Spain will ask for financial aid.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery fell 0.14% to trade at USD107.09 a barrel, with the spread between the Brent and crude contracts standing at USD22.19 a barrel.


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