Current Oil Prices Higher with Improved Q3 US Economic Growth
Current oil prices settled at a higher level, supported by better than anticipated growth of the US economy in the third quarter and concerns over Hurricane Sandy hitting the highly populated east coast, according to the report of the AFP.
On the New York Mercantile Exchange, the U.S. Benchmark for delivery in December finished higher by 23 cents compared to its closing rate last week, at a crude price per barrel of $86.28. In the meantime, Brent crude oil prices for December delivery moved $1.06 higher, to $109.55 a barrel, in London.
According to the Commerce Department, the economy of the United States grew at a yearly rate of 2 percent in the quarter from July to September. That marks a good improvement when compared to the 1.3 percent growth of the second quarter.
Moreover, this growth is a little higher than the 1.9 percent GDP growth estimate, stirring hopes for improved demand in the largest oil consuming nation of the world.
This level of GDP has motivated the market quite a bit compared to its past levels, said iiTrader’s Bill Baruch. He added that in the global market, demand fears have kept the industry underwater for the past two weeks.
The macroeconomic projection of Europe remains an offsetting pull on the performance of the global economy, with the newly-revealed jobless rate in Spain underscoring the challenges in the country, according to Citi Futures’ Timothy Evans.
Sucden Financial Research analyst Mr. Myrto Sokou said that current oil prices are still under pressure after the recent disappointment brought about by the latest US revenues figures as well as the tentative condition of the economies of Spain and Greece.