We have updated our privacy policy and terms & conditions. Find out more here.

Crude dips on U.S. fiscal woes, bearish inventory data

CommoditiesDec 28, 2012 06:18PM GMT Add a Comment
Share with a Friend
Thanks for sharing
Emails have been sent to:
To send more emails click here
Investing.com - Crude oil futures softened on Friday as crude inventories fell less than expected last week.

Uncertainty as to whether the U.S. will pass through fiscal reforms pushed prices down as well.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at USD90.69 a barrel on Friday, down 0.20%, off from a session high of USD91.50 and up from an earlier session low of USD90.34.

Failure to agree on fiscal framework in the U.S. now will allow tax breaks to expire at the end of the year alongside deep spending cuts, a combination known as a fiscal cliff that could push the U.S. economy into a recession next year, which would seriously crimp demand for fuels and energy.

In the U.S., President Barack Obama was to meet congressional leaders later Friday at the White House to discuss ways to avoid the fiscal cliff.

Sticking points between the White House and congressional Republicans include tax rates on top U.S. earners and accompanying spending cuts.

Meanwhile, the U.S. Energy Information Administration reported earlier that the country's crude oil stocks dropped by 586,000 barrels last week, less than an expected decline of 1.86 million barrels, which pushed prices down on fears demand may be waning.

Gasoline stocks rose by 3.78 million barrels, more than market calls for a gain of 543,000 barrels.

Solid economic indicators bolstered the commodity.

In the U.S. earlier, the National Association of Realtors revealed that pending home sales beat expectations in November, rising by 1.7% after a 5% increase the previous month.

Analysts were expecting pending home sales to rise by 1.0% in November.

Elsewhere in the U.S., the Chicago's purchasing managers' index rose to 51.6 in December, up from 50.4 in November and beating expectations for a rise to 51.0.

Meanwhile on the ICE Futures Exchange, Brent oil futures for February delivery were down 0.39% at USD110.36 a barrel, up USD19.67 from its U.S. counterpart.

Crude dips on U.S. fiscal woes, bearish inventory data

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Brent Oil
Are you sure you want to delete this chart?
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?

Successfully Reported

Thank you. This comment has been flagged for a moderator.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.