Brent Strong Ahead Of Payrolls Data
Benzinga | Dec 06, 2013 01:46AM ET
Brent crude oil climbed above $111 on Friday morning as investors looked to fresh US jobs data, due out later in the day, for clues about the number one oil consumer's appetite. The commodity traded at $111.26 at 7:00 GMT after Thursday's US data helped boost prices.
According to Reuters , the Commerce Department released a report which showed that the US' annual GDP rate increased at 3.6 percent rather than the originally estimated 2.8 percent. The figure marked the nation's largest gain since the beginning of 2012, however inventories were responsible for nearly half of the increase.
Many analysts were cautious about the optimistic data saying it did not tell the whole story, and that fourth quarter GDP could see a fall.
Brent also found support from severe weather as several North Sea oil producers were forced to shut down some platforms for safety reasons. In the North Sea, a large storm on its way to Europe is expected to reach the continent in what many meteorologists have said will be the most severe storm the region has seen in years.
Moving forward, investors will likely shift their focus to US nonfarm payrolls, due out later on Friday for further indications that the US economy is picking up. Although a growing US economy is positive for oil demand, it could also have a negative impact on Brent prices as taper talk returns to the market place. A positive surprise in nonfarm payrolls data this week could push the US Federal Reserve to cut down on its stimulus spending earlier than expected.
BY Laura Brodbeck
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.