Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Crude up in choppy trading on U.S. GDP data

Published 04/27/2012, 01:52 PM
Updated 04/27/2012, 01:54 PM

Investing.com - Crude oil futures rose in U.S. trading on Friday, caught in a tug-of-war among investors digesting weaker-than-expected U.S. gross domestic product data.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in June traded at USD104.72 a barrel, up 0.17%, off from a session high of 104.89 and up from an earlier session low of USD103.75.

The U.S. Commerce Department on Friday reported that U.S gross domestic product grew 2.2% in the first quarter, below estimates for a 2.5% gain.

Despite improving consumer demand, reduced government spending and business investment cut into growth.

The news was initially bearish for oil, as a weaker U.S. economy would need less oil and fuels to grow.

However, the Thomson Reuters/University of Michigan's consumer sentiment index hit 76.4 in April, beating expectations for a 75.7 reading, which was bullish for crude.

Meanwhile, fears that a weaker economy may prompt the Federal Reserve to consider stimulating the economy via monetary easing sent oil zigzagging further as well.

Stimulus measures often illustrate a weak economy that is in need of stronger medicine when interest-rate cuts alone won't suffice.

However, stimulus measures also inject liquidity into the economy that often finds its way to commodities markets, which would be bullish for crude.

By mid-session trading on Friday, the market decided crude was due to a rise either way and investors went long.

On the ICE Futures Exchange, Brent oil futures for June delivery were down 0.35% and trading at USD119.50 a barrel, up USD14.78 from its U.S. counterpart.







Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.