Investing.com - Crude oil futures traded slightly higher Friday as traders anticipate bullish U.S. economic data to increase demand for the commodity
On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at USD105.45 a barrel during U.S.early morning trade, gaining 0.35%.
Price has been in a tight range since Thursday’s false news release sell off, hitting a high of USD105.64 a barrel and a low of USD105.14 a barrel.
Supporting oil prices, demand anticipation was strengthened on forecasts that industrial production at U.S. factories, mines and utilities increased 0.4% prior to the official data being released later in today.
In addition, the Thomson Reuters/University of Michigan preliminary index of consumer sentiment is expected to hit a one year high of 76 in March adding to oil’s bullishness. The actual report will be released later in the session.
On Thursday, oil prices came under pressure, dropping by more than USD1.00 per barrel in a matter of minutes after Reuters reported that the U.S. and the U.K. will release strategic oil reserves in an effort to prevent high fuel prices.
However, an Obama administration aid quickly announced that the news release was false resulting in oil prices rebounding to near break even levels.
Earlier in the week, concerns over China’s growth outlook resurfaced after Premier Wen Jiabao said on Wednesday that China must embrace slower growth and bolder political reform to keep its economy from faltering, keeping the oil bulls in check.
The Asian nation last week lowered its economic growth expansion target to 7.5%, down from 8% over the past seven years.
The U.S. and China are the world’s two largest oil consuming nations.
Supresssing oil prices, the U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, gained 0.05% to trade at USD80.64
Elsewhere, on the ICE Futures Exchange, Brent oil futures for April delivery traded higher by 0.43% to hit USD123.14 a barrel, with the spread between the Brent and crude contracts standing at USD17.69.
On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at USD105.45 a barrel during U.S.early morning trade, gaining 0.35%.
Price has been in a tight range since Thursday’s false news release sell off, hitting a high of USD105.64 a barrel and a low of USD105.14 a barrel.
Supporting oil prices, demand anticipation was strengthened on forecasts that industrial production at U.S. factories, mines and utilities increased 0.4% prior to the official data being released later in today.
In addition, the Thomson Reuters/University of Michigan preliminary index of consumer sentiment is expected to hit a one year high of 76 in March adding to oil’s bullishness. The actual report will be released later in the session.
On Thursday, oil prices came under pressure, dropping by more than USD1.00 per barrel in a matter of minutes after Reuters reported that the U.S. and the U.K. will release strategic oil reserves in an effort to prevent high fuel prices.
However, an Obama administration aid quickly announced that the news release was false resulting in oil prices rebounding to near break even levels.
Earlier in the week, concerns over China’s growth outlook resurfaced after Premier Wen Jiabao said on Wednesday that China must embrace slower growth and bolder political reform to keep its economy from faltering, keeping the oil bulls in check.
The Asian nation last week lowered its economic growth expansion target to 7.5%, down from 8% over the past seven years.
The U.S. and China are the world’s two largest oil consuming nations.
Supresssing oil prices, the U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, gained 0.05% to trade at USD80.64
Elsewhere, on the ICE Futures Exchange, Brent oil futures for April delivery traded higher by 0.43% to hit USD123.14 a barrel, with the spread between the Brent and crude contracts standing at USD17.69.