The price of crude oil surged Friday morning as demand worries eased after the Federal Reserve announced the much awaited monetary stimulus measures.
Light Sweet Crude Oil (WTI) futures for October delivery, rose $1.71 to $100.20 a barrel Yesterday, oil ended at a four-month high after the U.S. Federal Reserve announced the much anticipated additional quantitative easing measures to stimulate growth in the world's largest economy. Prices were also supported by increasing tensions in the Middle East, with the U.S. Ambassador to Libya killed and protests spreading to more locations in the Arab world targeting the U.S.
This morning, the U.S. dollar was extending its four-month low versus the euro and sterling. The buck was leveling off from its seven-month low against the yen, while ticking lower against the Swiss franc.
In economic news, euro zone inflation increased as initially estimated to 2.6 percent in August, final data issued by Eurostat showed Friday. The rate rose from 2.4 percent in July. The central bank aims to retain inflation rates below, but close to, 2 percent over the medium term. Month-on-month, consumer prices were up 0.4 percent, in line with economists' expectations.
A separate report from the Eurostat revealed that the number of persons employed remained stable in the euro area during the second quarter, after falling 0.3 percent sequentially in the prior quarter.
Traders will look to the inflation data from the U.S. Labor Department due out at 8.30 a.m ET. Economists expect the headline index to have risen by 0.6 percent and the core reading by 0.2 percent. In July, consumer prices remained unchanged.
Simultaneously, the Commerce Department will release its report on retail sales for the month of August. Economists estimate a 0.8 percent increase each in retail sales and excluding autos sales.
by RTT Staff Writer
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