26 October 2012 12:34 [Source: ICIS news]
SINGAPORE (ICIS)--Crude futures softened on Friday, falling by more than $1/bbl at one stage, undermined by a stronger US dollar, and ahead of the release later in the day of third-quarter US GDP data.
At 10:58 GMT, December Brent crude on London’s ICE futures exchange was trading at $108.11/bbl, down by 38 cents/bbl from the previous close. Earlier, the North Sea benchmark fell to a session low of $107.40/bbl, down by $1.09/bbl.
December NYMEX light sweet crude futures (WTI) were trading at $85.64/bbl, down by 41 cents/bbl from the previous close. Earlier, the US benchmark declined to a session low of $85.00/bbl, down by $1.05/bbl.
The US dollar strengthened against leading currencies, making dollar-denominated commodities, like crude, less attractive to international investors.
Data from the US is expected to reveal that the world’s largest economy grew in the third quarter of 2012, but the rate of growth was insufficient to indicate that the US is on a sustainable path to recovery.
News that unemployment in Spain rose in the third quarter of 2012 to 25%, while credit ratings agency Standard & Poor’s had downgraded a number of French banks, added further downward pressure on crude.
Crude futures have fallen sharply since mid October with ICE Brent down around $7-8/bbl and WTI futures falling around $6/bbl amid concerns over the strength of the global economy and oil demand growth.
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