--U.S. crude futures keep watch in EU budget talks, Mideast conflict --Nymex oil recently up 16 cents to $87.54 a barrel --Equities post early gains, with focus on retail sector By Jerry A. DiColo NEW YORK--U.S. crude futures were slightly higher Friday as the euro-zone continued budget negotiations and investors kept watch on the ceasefire between Israel and Gaza. Light, sweet crude for January delivery recently traded 16 cents, or 0.1%, higher at $87.54 a barrel on the New York Mercantile Exchange. Nymex energy markets will settle one hour early Friday, at 1:30 p.m. EST, and light trading volume is expected following the Thanksgiving holiday. Brent crude on the ICE futures exchange for January delivery traded 10 cents higher at $110.65 a barrel. European Union leaders entered the second day of budget talks Friday with little sign that a deal was emerging. The 27-nation bloc remains deeply divided on spending and other issues, and oil markets are concerned that discord could further crimp the EU's economic outlook. Broader market movements also were muted Friday, though stock markets posted some early gains as investors focus on the retail sector on the biggest shopping day of the year in the U.S. Meanwhile, the conflict between Israel and Hamas in Gaza has paused amid a negotiated ceasefire. The break in violence has calmed fears that the rocket attacks could lead to a regional war with other nations, such as Egypt, that could impact energy-supply routes. Over the past two weeks, oil markets have wavered between gains and losses as traders weighed the latest Middle East conflict against slumping global economic growth and rising oil inventories. U.S. crude-oil futures are down from recent highs of $99 a barrel in mid-September. Front-month December reformulated gasoline blendstock, or RBOB, recently traded 0.4% lower at $2.7394 a gallon. December heating oil recently traded 0.3% lower at $3.0640 a gallon.

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