By Surabhi Sahu Crude oil futures fell in Asian trade Friday because of concerns about Europe's economic growth and the temporary dissipation of supply threats from the Middle East following a cease-fire between Israel and Hamas. On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at $87.23 a barrel at 0626 GMT, down $0.15 in the Globex electronic session. January Brent crude on London's ICE Futures exchange fell $0.25 to $110.30 a barrel. Volumes were subdued as U.S. markets were closed Thursday and Japan's markets were closed Friday due to public holidays. The truce between Israel and Hamas that took hold across the Gaza strip border on Thursday has temporarily eased fears of supply risks from the Mideast, a Singapore-based trader said. "Despite the initial calm, we're still not sure how long the cease-fire will hold up," he said, adding hostilities could resume, causing oil prices to spurt. Meanwhile, European economic data Thursday and continued concerns over the Greece debt were also bearish for oil prices, a Seoul-based trader said. The preliminary Markit euro-zone composite November purchasing managers index came in at 45.8 compared with 45.7 in October, but still indicated that economic activity continued to contract at a fast pace this month. Investors are awaiting a euro-zone finance ministers meeting on Monday to work out the bailout package for Greece, the trader said. Brent crude will likely trade in a $108-$112/bbl range through next week, Gordon Kwan, head of energy research at Mirae Asset Securities, told Dow Jones Newswires, noting prices will be supported by Mideast tensions. A cease fire has at least postponed an Israeli ground invasion though the situation will probably remain tense until a more far-reaching agreement is in place, Skandinaviska Enskilda Banken AB, said in a research report Thursday. SEB lowered its 2013 forecast for the European benchmark to $107.5/bbl from an estimate of $111.7/bbl for 2012. However, it said the civil war in Syria and other unresolved tensions in the Mideast region, including Iran, Egypt and Bahrain will support prices. "A deep, prolonged downturn in the oil market appears neither imminent nor likely unless the risk of a global recession increases significantly," it said. Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--fell 245 points to $2.7250 a gallon, while December heating oil traded at $3.0550, 172 points lower. ICE gasoil for December changed hands at $947.50 a metric ton, unchanged from Thursday's settlement. Write to Surabhi Sahu at surabhi.sahu@dowjones.com

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