FX:Crude oil continues higher on U.S. economic optimism
Forexpros - Crude oil futures turned higher Friday as Thursday's positive economic reports from the U.S. added to hopes optimism over the country's economic recovery.
On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD88.17 a barrel during European trade, gaining 0.11%.
On Thursday, the Commerce Department said gross domestic product expanded by 2.7% in the three months to September, up from a preliminary estimate of 2.0%, but below expectations for growth of 2.8%.
Separately, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell 393,000, from 416,000 the previous week, slightly less than expectations for a decline to 390,000.
In addition, the National Association of Realtors said its pending home sales index rose by 5.2% in October, surging to a five-year high and blowing past expectations for a 0.8% gain.
Pending home sales in September rose by 0.4%.
Meanwhile, traders continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
House of Representatives Speaker John Boehner said Wednesday that he remained hopeful Republicans could forge an agreement with the White House to avert the budget crisis.
President Barack Obama later said he believed a "framework" for an agreement can be reached before Christmas.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Oil prices have also remained supported amid concerns tension in the Middle East and North Africa will spread and disrupt crude supplies.
Eight days of aerial assaults ravaged the Gaza Strip and made Tel Aviv and Jerusalem missile targets before Israel and Hamas signed a cease-fire agreement on November 21.
Separately, protests erupted in Egypt after President Mohamed Mursi issued a November 22 decree that prevents his actions from being challenged by the courts.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery eased 0.09% to trade at USD110.66 a barrel, with the spread between the Brent and crude contracts standing at USD22.66 a barrel.
