Crude drops as U.S. economy expands less than expected

CommoditiesApr 26, 2013 12:50PM ET - Oil prices dropped on Friday after data revealed the U.S. economy grew less than expected in the first quarter.

On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded down 1.03% at USD92.68 a barrel on Friday, off from a session high of USD93.56 and up from an earlier session low of USD92.10.

In the U.S. earlier, the Bureau of Economic Analysis revealed in a preliminary report that the U.S. gross domestic product rose 2.5% in the first quarter, missing expectations for a 3.0% increase though an improvement from a 0.4% rise in the previous quarter.

The news sent oil prices falling by fanning sentiments that potholes remain on the road to recovery in the U.S., which could demand less fuels and energy than once expected.

The numbers also fanned concerns that the economy will slow even further in the second quarter.

Elsewhere, the Thomson Reuters/University of Michigan's consumer sentiment index rose to 76.4 in April, from a reading of 72.3 the previous month, beating expectations for an increase to 73.2, though oil still fell on economic growth numbers.

Elsewhere on the ICE Futures Exchange, Brent oil futures for June delivery were down 0.55% at USD102.84 a barrel, up USD10.16 from its U.S. counterpart.

Crude drops as U.S. economy expands less than expected

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