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WSJ:OIL FUTURES: Crude Up On Risk Appetite; US GDP Estimate Eyed
 
--Oil prices are higher as ECB president comments continue to provide support

--Oil futures market will remain in a macro-trading mode, analyst says

--Market awaits U.S. economic growth numbers for second quarter


By Konstantin Rozhnov

LONDON--Crude-oil futures were trading higher Friday, as Thursday's comments by the European Central Bank president about doing everything possible to solve the euro-zone's crisis continue to provide strong support to prices, analysts said.

"With these comments, investors became more open to risks," Commerzbank said in a note.

At 1050 GMT, the front-month September Brent contract on London's ICE futures exchange was 55 cents, or 0.5%, higher at $105.81 a barrel. The front-month September contract on the New York Mercantile Exchange was trading up 28 cents, or 0.3%, at $89.67 per barrel.

ECB President Mario Draghi's comments have provided some relief to the market, and oil prices are likely to trade at current levels next week if there are no major geopolitical developments in the Middle East or big macro-economic news, said Thina Saltvedt, a senior oil-market analyst at Nordea Bank Norge.

The oil futures market will remain in a macro-trading mode, focusing on estimates of the U.S. economic growth in the second quarter due later Friday and then the U.S. Federal Reserve's policy announcement next week, says VTB Capital analyst Andrey Kryuchenkov.

"Some pre-weekend profit taking is possible, but overall we still expect the latest rebound to run out of steam without any macro or geopolitical surprises," he adds.

The U.S. is the world's largest oil consumer, and market participants pay close attention to U.S. macro-economic releases for clues for future global demand for oil.

Oil prices will change significantly only if the U.S. economic growth numbers miss expectations, but it doesn't happen often with U.S. GDP estimates, said Ms Saltvedt.

"Price increases on the oil market are being triggered at present largely by external factors such as yesterday's [Draghi] statements or supply-side risks," said Commerzbank.

A sustained retreat below $103 a barrel could see a Brent pullback to $101/$100.5 a barrel, said Mr Kryuchenkov.

"Otherwise, we will continue in choppy trading above $103 and with resistance around $107/$108," he added.

At 1050 GMT, the ICE's gasoil contract for August delivery was up $1.75, or 0.2%, at $907.25 per metric ton, while Nymex gasoline for August delivery was 175 points, or 0.6%, higher at $2.8313 per gallon.
Source