Forexpros - Crude oil futures moved higher in U.S. trade Friday continuing the up move as indications that the Organization of Petroleum Exporting Countries will choose to maintain current output levels lift prices amid central bank monetary easing hopes. However, investors remained jittery over surging borrowing costs in Spain and Italy and ahead of weekend elections in Greece, which could determine the course of the country’s future in the euro zone. Disappointing U.S. economic data also weighed. On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded at USD84.11 a barrel during U.S. morning trade, moving higher by 0.17%. Dampening energy sentiment in the U.S., UoM consumer sentiment fell more-than-expected last month, preliminary data showed on Friday. In a report, the University of Michigan said that consumer sentiment fell to a seasonally adjusted 74.1, from 79.3 in the preceding month. Analysts had expected UoM consumer sentiment to fall to 77.5 last month. In additional oil negative news, U.S. industrial production fell unexpectedly last month, official data showed on Friday. Meanwhile, U.S. TIC long term purchases rose less-than-expected last month, official data showed on Friday. In a report, Department of the Treasury said that U.S. TIC long term purchases rose to a seasonally adjusted 25.6B, from 36.0B in the preceding month whose figure was revised down from 36.2B. Analysts had expected U.S. TIC long term purchases to rise 45.3B last month. In a report, the Federal Reserve said that industrial production fell to -0.1%, from 1.0% in the preceding month whose figure was revised down from 1.1%. Analysts had expected industrial production to rise 0.1% last month. Yesterday, OPEC said it was pumping 32.4 million barrels a day of oil, a level not seen since the summer of 2008 and 2.4 million barrels more than the official 30-million-barrel-limit agreed to at the last meeting in December. Market analysts expect the oil group to keep output high as tightening sanctions reduce oil output in Iran. The country is OPEC's second-largest producer behind Saudi Arabia, which has boosted output to account for the decline in Iranian exports. "In my opinion we should be keeping to the ceiling, the ceiling we agreed in December," said Angolan Oil Minister Jose de Vasconcelos. "In all probability," OPEC would retain that formal target, said Kuwaiti Oil Minister Hani Hussein. Iran and Venezuela have recently criticized other members of the cartel for producing more than the existing quota. A potential loss of Iranian oil supplies has helped underpin strong gains in oil prices during late last year and the first quarter of this year. But prices declined nearly 25% from this year’s high in March, as the markets took into account assurances from Saudi Arabia that it would make up for any supply shortfalls against the potential risk for the loss of oil from Iran. Meanwhile, growing concerns over rising borrowing costs in Spain and Italy, as well as jitters ahead of weekend elections in Greece continued to dominate market sentiment. The yield on Spanish 10-year bonds was at 6.95%, after briefly breaking through the critical 7% threshold earlier, a level seen as unsustainable in the long run. The spike in borrowing costs came one day after ratings agency Moody’s cut Spain’s credit rating by three notches to just above junk status and warned that further cuts were possible. On Thursday, Italy sold the maximum targeted amount of EUR4.5 billion of government bonds, but the country’s three-year borrowing costs jumped to the highest level since December, amid concerns over sovereign debt contagion. Meanwhile, investors remained jittery ahead of Sunday’s closely watched general election in Greece, amid fears that a win for anti-bailout parties could precipitate a Greek exit from the euro zone. Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery climbed 0.63% to trade at USD 97.75 a barrel, with the spread between the Brent and crude contracts standing at USD13.61.

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