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Oil Edges Higher on Upbeat Chinese Data

TIME EQUALS

MONEY

Singapore - Oil prices rose in Asian trade on Friday on upbeat economic growth data from China, but concerns over the stop-gap deal to avert a disastrous US debt default capped gains, analysts said.

New  

York's  

main  

contract,  

West  

Texas  

Intermediate  

(WTI)  

for  

delivery  

in  

November,  

was  

up  

12  

cents  

at  

$100.79  

a  

barrel  

in  

mid-morning  

trade,  

while  

Brent  

North  

Sea  

crude  

for  

December  

gained  

12c  

to

$109.23.

China said Friday its economy expanded 7.8% year-on-year in July-September, snapping two quarters of slowing growth in the world's top energy consuming nation.

"The price support for oil right now is probably due to the stronger Chinese growth data," David Lennox, resource analyst at Fat Prophets in Sydney, told AFP.

He added that gains were capped by worries about developments in the United States, after a last-gasp deal by lawmakers on Thursday averted a disastrous debt default by the world's biggest economy.

A  

bill  

passed  

by  

Congress  

and  

signed  

into  

law  

by  

President  

Barack  

Obama  

restarted  

government  

operations  

after  

a  

16-day  

partial  

shutdown,  

and  

raises  

the  

country's  

debt  

ceiling  

until  

February  

7.  

However,

there are fears of another stand-off in Washington when that time is up.

"Investors  

are  

probably  

fretting  

over  

the  

lack  

of  

information  

on  

US  

crude  

demand  

with  

no  

weekly  

crude  

stockpiles  

reports  

from  

the  

US  

Energy  

Information  

Administration  

(EIA)  

during  

the  

shutdown,"  

Lennox

said.

The EIA said on its website Thursday that it would resume its weekly stockpiles report - a barometer for US energy demand - on October 23.

> NEWS by Mazolutions Specialist Welding Solutions | Oct 18, 2013
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