Oil prices rise on US growth, Hurricane Sandy

Business

Oil prices rise on US growth, Hurricane Sandy

Close

Oil prices rose on better-than-expected US economic growth in the third quarter.

27 October,2012 05:25 am

Oil prices closed higher Friday, lifted by better-than-expected US economic growth in the third quarter and worries about Hurricane Sandy churning toward the heavily populated US east coast.New Yorks main contract, light sweet crude for December settled at $86.28 a barrel, up 23 cents from Thursdays close.Meanwhile, Brent North Sea crude for delivery in December gained $1.06 at $109.55 a barrel in London trade.The US economy grew 2.0 percent at an annualized rate in the July-September quarter, accelerating from 1.3 percent in the second quarter, the Commerce Department reported.That was slightly above the 1.9 percent consensus estimate for gross domestic product growth, spurring hopes for better demand in the worlds biggest crude oil-consuming country.GDP has encouraged the market a little bit from previous levels, said Bill Baruch at iiTrader.In the global economic market, the fear for demand has kept the market underwater for the last two weeks, he added.Timothy Evans at Citi Futures pointed out the European macroeconomic outlook remained an offsetting drag on global performance, with the new high in Spanish unemployment underscoring the challenges there.Crude oil prices continue to remain under pressure, following the recent disappointing US earnings results and the tentative economic conditions in Greece and Spain, said Sucden Financial Research analyst Myrto Sokou.The market was keeping a close eye on Hurricane Sandy, which has left dozens dead as it barrels through the Caribbean.US National Hurricane Center forecasters said the storm was likely to make US landfall early Tuesday, anywhere from south of Delaware up through northern New England.The storm could hit a cluster of refineries along the Atlantic coast from Virginia all the way up to New Jersey, said John Kilduff at Again Capital, adding they may shutter operations as a precautionary measure.