14.02.2014 21:01:02
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Crude Oil Ends Lower On Soft Data; Gains 0.4% For Week
(RTTNews) - U.S. crude oil ended lower for a second straight session Friday, after some mixed economic data with industrial production in the U.S. declining and on profit taking. Nevertheless, fears of supply interruptions from Libya and Angola kept losses at a minimum, with crude well above the $100-mark at close.
Crude oil continued to trend above $100 a barrel amid signs of increased global demand for energy products. The International Energy Agency on Thursday said global inventories were at a 5-year low, with oil analysts predicting significant stockpiles of crude oil this winter.
Oil futures recorded a fifth straight week of gain, adding 0.4 percent for the week.
On the economic front, a Thomson Reuters and the University of Michigan report on Friday showed consumer sentiment to have unexpectedly held steady in February, after reporting a drop in the previous month. As well, industrial production in the U.S. unexpectedly declined in January, with severe freezing weather curtailing manufacturing production in some regions of the country.
Meanwhile, import prices in the U.S. unexpectedly saw a modest increase in January, reflecting a rebound in prices for non-fuel imports, a report from the Labor Department showed.
Light Sweet Crude Oil futures for March delivery, the most actively traded contract, dropped $0.05 or 0.1 percent to close at $100.30 a barrel on the New York Mercantile Exchange Friday.
Crude prices for March delivery scaled a high of $100.47 a barrel intraday and a low of $99.43.
Yesterday, crude oil ended a shade lower on some disappointing economic data from the U.S. with retail sales dropping in January and initial claims for unemployment benefits increasing more than expected, notwithstanding a weak dollar.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.15 on Friday, down from its previous close of 80.29 late Thursday in North American trade. The dollar scaled a high of 80.33 intraday and a low of 80.07.
The euro traded higher against the dollar at $1.3695 on Friday, as compared to its previous close of $1.3680 late Thursday in North America. The euro scaled a high of $1.3714 intraday and a low of $1.3674.
In economic news, the Thomson Reuters and the University of Michigan report showed preliminary reading on the consumer sentiment index for February at 81.2, unchanged from the final January reading. Economists expected the index to drop to a reading of 80.2.
A Federal Reserve report showed Industrial production in the U.S. fell 0.3 percent in January after rising 0.3 percent in December. Economists expected production to increase by 0.3 percent. The unexpected drop in industrial production was partly due to the weather-related weakness in the manufacturing sector. Manufacturing production dropped 0.8 percent in January following a downwardly revised 0.3 percent increase in the previous month.
A Labor Department report showed import prices in the U.S. inched up 0.1 percent in January following a revised 0.2 percent increase in December. Economists expected import prices to edge down 0.1 percent compared to the unchanged reading originally reported the previous month. The uptick was due to a rebound in prices for non-fuel imports, which rose 0.3 percent in January after dipping by 0.1 percent in December. Export prices rose 0.2 percent in January after climbing 0.4 percent in December, with economists anticipating prices to move up by 0.1 percent.
Reflecting moderating demand in global commodity markets, producer prices in China extended its decline for the 23rd month, data from the National Bureau of Statistics showed Friday. Consumer prices were up 2.5 percent in January from the prior year, the same rate of growth as seen in December, but slightly above the 2.4 percent rise forecast by economists.
Gross domestic product in the euro area grew 0.3 percent sequentially, which was faster than the 0.1 percent rise posted in the third quarter, flash estimates from Eurostat showed Friday. The rate was also above the 0.2 percent forecast by economists. The economy expanded for the third successive quarter at the end of 2013, following six quarters of contraction. On a yearly comparison, GDP rose 0.5 percent, reversing the 0.3 percent decline in the third quarter.