NEW YORK: Brent crude futures edged higher in choppy trading yesterday, lifted by economic data, but gains were limited by rising oil inventories and tepid demand figures.
Brent is trying to snap a string of seven straight lower settlements, but remained on pace to post a weekly loss. US crude prices seesawed near flat after briefly turning lower and trying to avoid a sixth straight session of losses.
Oil was supported by British government data showing gross domestic product rose 1.0 percent in the third quarter, beating forecasts for a 0.6 percent gain after GDP contracted 0.4 percent in the previous quarter.
US economic reports were mixed. Initial jobless claims fell last week, supporting oil prices, but the four-week average was up. Durable goods orders were up more than expected in September, but excluding defense and aircraft, were unchanged.
A government report showing US crude oil stocks jumped 5.9 million barrels last week continued to weigh on oil prices. The inventory rise was well above the expected increase of 1.9 million barrels in a Reuters survey of analysts. Demand for refined products over the previous four weeks was below the year-before period, the Energy Information Administration said.
Brent December crude rose 40 cents to $108.25 a barrel by 12:15 p.m. EDT (1615 GMT). Thursday’s $107.46 low trade put Brent briefly below the 100-day moving average of $107.58. US December was up 6 cents at $85.79 a barrel, having swung from $85.23 to $86.75.
Reuters
