Crude Oil Ends Higher On Upbeat Data

(RTTNews) - U.S. crude oil ended slightly higher for a second straight session, supported by some positive economic data from the U.S. with housing starts and consumer sentiment rising more than expected, and as well on bargain hunting.

Nonetheless, the uptick in prices were checked as investors continued to worry over the excess supply scenario after the official weekly oil report from the U.S. Energy Information Administration showed a huge surge in crude oil inventories.

After the upbeat U.S. initial jobless claims and industrial production reports yesterday, the market got another boost today with a report from the Commerce Department showing a more than expected increase in U.S. housing starts.

An encouraging report from Reuters and the University of Michigan showed U.S. consumer sentiment to have improved more than expected in October, rising to its highest level since July 2007.

Light Sweet Crude Oil futures for November delivery gained $0.05 to close at $82.75 a barrel on the New York Mercantile Exchange Friday.

Crude prices for November delivery scaled a high of $84.45 a barrel intraday and a low of $82.44.

Light Sweet Crude Oil futures for December delivery, the most actively traded contract, gained $0.11 to close at $82.06 a barrel on the New York Mercantile Exchange Friday.

Crude prices for December delivery scaled a high of $83.74 a barrel intraday and a low of $81.75.

On Thursday, crude oil futures ended sharply higher after some encouraging economic data from the U.S. even as inventories surged. Reports showing an unexpected drop in initial jobless claims and an bigger than expected increase in industrial production, along with dovish rhetoric from Federal Reserve officials, helped oil recover on Thursday.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 85.14 on Friday, up from its previous close of 84.96 late Thursday in North American trade. The dollar scaled a high of 85.25 intraday and a low of 84.76.

The euro trended lower against the dollar at $1.2771 on Friday, as compared to its previous close of $1.2809 late Thursday in North American trade. The euro scaled a high of $1.2836 intraday and a low of $1.2746.

In economic news from the U.S., a report from the Commerce Department showed housing starts increased by a more than expected 6.3 percent to a seasonally adjusted annual rate of 1.017 million in September, after tumbling 12.8 percent to a rate of 957,000 in August. Economists had expected housing starts to rise to a rate of 1.008 million.

Building permits rose 1.5 percent to a rate of 1.018 million in September.

Consumer sentiment in the U.S. improved unexpectedly in October, a report from Thomson Reuters and the University of Michigan showed Friday. A preliminary reading on the consumer sentiment index for October came in at 86.4 compared to the final September reading of 84.6. Economists expected the index to edge down to a reading of 84.0.

The eurozone economy grew more than previously estimated in the second quarter, latest estimates under the new ESA 2010 rule showed. Gross domestic product grew 0.1 percent sequentially in the second quarter, the Eurostat reported. The ESA 95 based estimation had showed a flat growth for the second quarter.

The annual growth for the currency bloc was revised to 0.8 percent in the second quarter from 0.7 percent.

Separately, data from Eurostat showed eurozone construction output to have increased at a faster pace in August. Construction output advanced 1.5 percent month-on-month following a 0.3 percent rise in July. Building output was up 1.4 percent and civil engineering advanced 2.1 percent.