Crude falls as U.S. consumer sentiment data disappoints
Published Jan 18, 2013 12:18PM ET
On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at USD95.64 a barrel on Friday, down 0.31%, off from a session high of USD96.12 and up from an earlier session low of USD95.40.
In the U.S. earlier, data revealed that the Thomson Reuters/University of Michigan's preliminary index of U.S. consumer sentiment fell to 71.3 in January — its lowest level since December 2011 — from 72.9 in December, disappointing expectations for an improvement to 75.0.
Consumer spending drives about 70% of total U.S. economic output, and the disappointing sentiment figures offset solid housing and labor-market data released on Thursday.
In the U.S. a day earlier, the Department of Labor reported that the number of individuals filing for weekly jobless benefits last week fell by 37,000 to a seasonally adjusted five-year low of 335,000, much more than market calls for a decline of 7,000 to 365,000.
The news sent oil prices surging on sentiments that a stronger U.S. economy will demand more fuels and energy going forward.
Also on Thursday, the Commerce Department said U.S. housing starts jumped by 12.1% in December to an annual unit rate of 954,000, the highest level since 2008, beating out expectations for a 4.6% increase to 890,000, which also pushed growth-sensitive oil prices higher.
Solid Chinese growth data offset crude's losses, however.
China's gross domestic product rose 7.9% in the fourth quarter from a year earlier, compared with expectations for a 7.8% rise, after a 7.4% increase in the previous quarter.
Elsewhere on the ICE Futures Exchange, Brent oil futures for March delivery were up 0.10% at USD111.22 a barrel, up USD15.58 from its U.S. counterpart.
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Written By: Investing.com
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