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Crude oil declines on stronger U.S. dollar

Published 10/31/2014, 07:57 AM
Updated 10/31/2014, 07:57 AM
Crude oil prices slide lower on U.S. data, Fed

Crude oil prices slide lower on U.S. data, Fed

Investing.com - Crude Oil futures declined on Friday, as Thursday's upbeat U.S. economic reports and the Federal Reserve's most recent policy statement lent support to the dollar.

On the New York Mercantile Exchange, U.S. crude oil for delivery in December traded at $80.43 a barrel during European early afternoon trade, down 0.69$ or 0.86%.

Prices tumbled 1.08$ or 1.31% on Thursday to settle at $81.12.

Futures were likely to find support at $79.44 a barrel, the low from October 27 and resistance at $82.88, the high from October 29.

The dollar found support on signs the U.S. economic recovery is on track after the Commerce Department reported on Thursday that U.S. gross domestic product grew at an annual rate of 3.5% in the three months to September, beating forecast for 3%.

A separate report showed that the number of Americans filing new claims for jobless benefits rose for a second week last week, but underlying trends still pointed to a recovery in the labor market.

On Wednesday, the Fed said it was ending its monthly bond-buying program due to improvements taking place in the labor market, which also boosted demand for the U.S. dollar.

A stronger greenback makes oil and less attractive commodity on dollar-denominated exchanges, especially in the eyes of investors holding other currencies.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for December delivery lost 0.92$, or 1.07%, to hit $85.34 a barrel, while the spread between the Brent and the WTI crude contracts stood at $4.91.

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