Crude oil futures rally to 4-month high on U.S. economic outlook
Investing.com
Published Jan 17, 2013 10:05AM ET
Geopolitical tensions in Algeria provided further support.
On the New York Mercantile Exchange, light sweet crude futures for delivery in March traded at USD95.80 a barrel during U.S. morning trade, up 1.2% on the day.
New York-traded oil prices rose by as much as 1.4% earlier to hit a session high of USD95.97 a barrel, the strongest level since September 19.
Oil futures prices rose to the highest level of the day after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 37,000 to a seasonally adjusted 335,000, compared to expectations for a decline of 7,000 to 365,000.
A separate report showed that U.S. housing starts jumped by 12.1% in December to a seasonally adjusted 0.954 million, compared to expectations for a 3.3% increase to 0.890 million.
Also Thursday, the Federal Reserve Bank of Philadelphia said that its manufacturing index fell to minus 5.8 in January from December’s reading of 4.6.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Market players now looked ahead to data from China on fourth quarter gross domestic product on Friday for signs of a recovery in the world’s second-largest economy.
The Asian nation is also set to release reports on industrial production and retail sales.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Meanwhile, oil traders monitored fresh geopolitical tension in Algeria after Islamist militants attacked a natural gas facility and kidnapped 41 foreigners on Wednesday, including seven U.S. citizens.
At least three people were killed in the attack, including a U.K. and a French national.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for March delivery added 0.8% to trade at USD110.55 a barrel, with the spread between the Brent and crude contracts standing at USD14.75 a barrel.
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Written By: Investing.com
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