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Crude Edges Down Amid Demand Concerns

The price of crude oil was moving lower Friday morning as traders fret over demand growth despite upbeat macroeconomic data from China, the second largest oil consuming nation.

Growth in China's industrial production accelerated more than expected in October, data released by the National Bureau of Statistics showed. Production expanded 9.6 percent year-on-year, faster than 9.2 percent gain in September. Economists had forecast a growth rate of 9.4 percent.

Separately, the agency said China's retail sales grew more than expected in October. Sales rose 14.5 percent year-on-year in October, faster than 14.2 percent increase in the previous month. Economists expected the rate of growth to quicken to 14.4 percent.

The OPEC in its monthly oil report released today, maintained its 2013 global oil demand growth forecast at 0.80 mbd.

Light Sweet Crude Oil (WTI) futures for December delivery, slipped $0.29 to $84.80 a barrel. Yesterday, oil settled higher mostly on some upbeat macroeconomic data with euro zone concerns easing as the Greek parliament approved some stringent austerity measures demanded by international lenders for the next tranche of the bailout aid.

This morning, the U.S. dollar was extending its 2-month high versus the euro and the Swiss franc, while advancing towards a three-week high against sterling. The buck continued to level off from its 4-month high versus the yen.

In economic news, Germany's harmonized inflation came in at 2.1 percent in October, in line with flash estimate, final data from the Federal Statistical Office showed. The annual rate also remained unchanged from September. At the same time, consumer prices climbed 2 percent year-on-year in October, similar to the increase logged in September and matched preliminary estimate.

Meanwhile, the U.K. trade in goods resulted in a deficit of GBP 8.4 billion in September compared to a GBP 10 billion shortfall in August, the Office for National Statistics said. It fell below a GBP 8.9 billion deficit forecast by economists.

by RTTNews Staff Writer

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