U.S. Crude Oil Ends Above $93 On U.S. Data

(RTTNews) - U.S. crude oil surged to end higher on Friday, after data from the U.S. showed its economy to have expanded more than previously estimated in the second quarter. The rise comes amid concerns over supply disruptions from the Middle East with the U.S. and allies continuing airstrikes against IS militants in Iraq and Syria.

Prices were bolstered by data indicating a rise in U.S. consumption following an expansion of the economy.

In some upbeat data, a U.S. Commerce Department report on Friday showed economic activity in the country to have grown faster than previously estimated in the second quarter of 2014, with the upwardly revised growth matching economist estimates.

Earlier this week, the Energy Information Administration said crude inventories fell 4.3 million barrels in the week ending Sept. 19, the lowest since the start of summer. Analysts anticipated an increase of 386,000 barrels for the week.

Crude oil rallied despite the dollar growing in strength with the greenback scaling its highest in 22 months versus the euro.

Light Sweet Crude Oil futures for November delivery, the most actively traded contract, jumped $1.01 or 1.1 percent to close at $93.54 a barrel on the New York Mercantile Exchange Friday.

Crude prices for November delivery scaled a high of $93.86 a barrel intraday and a low of $92.23.

On Thursday, crude oil ended lower after some soft economic data from the U.S. reignited concerns over demand growth with fears of a supply glut as investors digested news of increased supplies from Libya.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 85.64 on Friday, up from its previous close of 85.18 late Thursday in North American trade. The dollar scaled a high of 85.66 intraday and a low of 85.11.

The euro trended lower against the dollar at $1.2685 on Friday, as compared to its previous close of $1.2751 late Thursday in North American trade. The euro scaled a high of $1.2761 intraday and a low of $1.2680.

On the economic front, a report from the Commerce Department showed economic activity in the U.S. grew faster than previously estimated in the second quarter of 2014, with the upwardly revised growth matching economist estimates. U.S. GDP in the second quarter rose 4.6 percent compared to the previously reported 4.2 percent growth. This was in line with economists' consensus estimate, and reflects a significant turnaround from the 2.1 percent contraction seen in the first quarter.

According to a report from Thomson Reuters and the University of Michigan, consumer sentiment index for September came in at 84.6, unchanged from the preliminary estimate and above the final August reading of 82.5.

The leading index for Eurozone declined in August, following an increase in July, a Conference Board survey showed Friday. The leading index fell 0.6 percent month-over-month in August, after the 0.3 percent increase in July. The index has remained unchanged in June.

A leading index for China's economy slowed in August but continued to expand, the Conference Board revealed on Friday with a 0.7 percent gain. That follows the 1.2 percent increase in July and the 1.3 percent gain in June.

German consumer sentiment is set to deteriorate in October on continued tensions regarding the geopolitical situation, a survey by market research group GfK revealed Friday. The forward-looking consumer confidence index dropped to 8.3 in October from 8.6 in September. It was forecast to drop marginally to 8.5.