U.S. crude oil rebounded to close higher Friday, on cue from a rising U.S. equity market and a dollar that weakened against the euro and other major currencies on fears the recent measures to stimulate growth could fuel inflation and keep interest rates at rock bottom. The euro benefited on news reports that Spain is in the process of drawing up a reform plan with the EU to enable it request a bailout.
Nevertheless, crude oil shed six percent for the week.
Light Sweet Crude Oil futures for November, the new front-month contract, delivery gained $0.47 or 0.5 percent to close at $92.89 a barrel on the New York Mercantile Exchange Friday.
Crude prices scaled a high of $93.84 a barrel intraday and a low of $92.59.
Yesterday, oil ended flat on demand growth concerns with some soft macroeconomic data out of Europe and China, the huge U.S. crude stockpile, Saudi Arabia's decision to maintain production at a high level, a strong dollar, and a sluggish U.S. equity market.
The euro traded higher against the dollar at $1.2999 on Friday, as compared to $1.2968 late Thursday in North America. The euro scaled a high of $1.3047 intraday and a low of $1.2956.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.28 on Friday, down from 79.38 in North American trade late Thursday. The dollar scaled a high of 79.45 intraday and a low of 79.05.
In economic news from Europe, the U.K. budget deficit remained unchanged in August from the previous year, data from the Office for National Statistics showed. Excluding intervention, public sector net borrowing was GBP 14.4 billion in August, equal to the net borrowing in August 2011. Economists forecast a shortfall of GBP 15 billion.
The World Trade Organization (WTO) Friday lowered its growth forecast for global merchandise trade, citing economic slowdown in China and the other major world economies, and the unresolved debt crisis in the Eurozone. The WTO downgraded its outlook for international trade growth to 2.5 percent this year from its previous estimate of 3.7 percent. The forecast for 2013 has been revised down to 4.5 percent from 5.6 percent.
by RTT Staff Writer
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