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Oil rises in Asia after slack U.S. showing

Published 11/07/2013, 09:10 PM
Investing.com - Oil futures traded higher during Friday’s Asian session as traders modestly bought a dip following a downbeat performance by crude during Thursday’s session.

On the New York Mercantile Exchange, light, sweet crude futures for December delivery rose 0.34% to USD94.52 per barrel in Asian trading Friday. The December contract settled lower by 0.63% at USD94.20 on Thursday despite some solid U.S. economic data.

In U.S. economic news out Thursday, the Commerce Department said the U.S. economy grew at an annual rate of 2.8% in the three months to September, far surpassing expectations for a 2.0% reading. The U.S. economy grew by 2.5% in the preceding quarter.

Separately, the Department of Labor said the number of individuals filing for initial jobless benefits in the U.S. last week fell by 9,000 to a seasonally adjusted 336,000, largely in line with analysts' forecasts for a claims to fall by 10,000.

Meanwhile, OPEC, the 12-member cartel that controls 40% of global oil production, significantly boosted its output estimate for U.S. and Canadian shale formations. OPEC now expects U.S. and Canadian shale production to reach 4.9 million barrels per day by 2017, up from a previous estimate of 1.7 million barrels per day.

OPEC members such as Algeria and Nigeria have already seen shipments to the U.S., the world’s largest oil consumer, taper off because of soaring production in the world’s largest economy.

Traders will now turn their attention to the U.S. non-farm payroll report for October, which is due out later Friday.

Elsewhere, Brent crude futures for December delivery inched down 0.01% to USD103.37 per barrel on the ICE Futures Exchange.


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