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Oil trades slightly higher on easing hopes

Published 10/24/2013, 09:27 PM
Updated 10/24/2013, 09:27 PM
Investing.com - Oil futures traded slightly higher during Friday’s Asian session, burnished by hopes a recent batch of mediocre U.S. employment data will prevent the Federal Reserve from imminently tapering its monetary easing efforts.

On the New York Mercantile Exchange, light, sweet crude futures for December delivery rose 0.14% to USD97.25 per barrel in Asian trading Friday. The December contract settled higher by 0.26% at USD97.11 per barrel on Thursday.

In U.S. economic news out Thursday, the Department of Labor reported earlier that the number of individuals filing for initial jobless benefits declined by 12,000 to a seasonally adjusted 350,000. Analysts had expected U.S. jobless claims to fall by 22,000 to 340,000 last week.

Earlier this week, the Department of Labor reported that U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000.

A separate report showed that the U.S. trade deficit widened 0.4% to a seasonally adjusted USD38.8 billion in August from a deficit of USD38.6 billion in July. Economists had forecast a deficit of USD39.5 billion.

The disappointing claims number was enough to stoke speculation that a spate of tepid jobs data will be enough to keep the Federal Reserve from tapering its quantitative easing program before next year.

Fed tapering would likely bolster the dollar and apply pressure to oil stocks. While many large-cap oil equities have been solid, though not spectacular performers, impressive gains have been notched by small-cap energy names that could be vulnerable if tapering comes to pass.

Elsewhere, Brent crude futures for December delivery rose 0.16% to USD107.14 per barrel on the ICE Futures Exchange.


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