Crude Oil Settles Higher, Gains 1.8% For Week

(RTTNews) - U.S. crude oil settled higher on Friday, driven mostly by the more-than-expected slump in U.S. stockpiles earlier this week and on some mixed economic data from the U.S. with industrial production increasing in line with estimates. Nonetheless, gains were capped on some soft U.S. data with consumer sentiment in January dropping unexpectedly and housing starts pulling back in December.

Crude oil gained about 1.8 percent for the week

Economic data from the U.S. showed consumer sentiment to have unexpectedly deteriorated in January, reflecting lower expectations among lower and middle-income families, a report from Thomson Reuters and the University of Michigan said Friday.

Meanwhile, housing starts in the U.S. pulled back in December, after reporting a substantial increase in new residential construction in the previous month, according to a Commerce Department report. The drop is attributed to the surge in housing starts in the previous month and the winter storms in December.

Nevertheless, industrial production in the U.S rose in line with estimates in December, with increases in manufacturing and mining production offsetting a pullback in utilities output.

Investors also continued to mull over the the Organization of the Petroleum Exporting Countries monthly oil report, which indicates lower demand for crude in 2014.

Light Sweet Crude Oil futures for February delivery, the most actively traded contract, gained $0.41 or 0.4 percent to close at $94.37 a barrel on the New York Mercantile Exchange Friday.

Crude prices for February delivery scaled a high of $94.94 a barrel intraday and a low of $93.94.

Oil prices ended lower yesterday, on demand growth concerns after an OPEC report showed output in December to have declined, with Iran expected to resume export of its crude after a deal with six world powers. Some soft inflation and initial unemployment benefit claims data out of the U.S. also dampened investor sentiments.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.25 on Friday, up from its previous close of 80.92 late Thursday in North American trade. The dollar scaled a high of 81.30 intraday and a low of 80.91.

The euro traded lower against the dollar at $1.3527 on Friday, as compared to its previous close of $1.3620 late Thursday in North America. The euro scaled a high of $1.3621 intraday and a low of $1.3518.

In economic news, a report from Thomson Reuters and the University of Michigan on Friday showed U.S. consumer sentiment index to have dropped to 80.4 in January from 82.5 in December. Economists expected the index to climb to 83.5. The decrease was attributed to lowered expectations among lower- and middle-income families.

U.S. housing starts in December fell 9.8 percent to an annual rate of 999,000 in December after jumping 23.1 percent to the revised November estimate of 1.107 million, a Commerce Department report showed Friday. Economists expected housing starts to drop to an annual rate of 985,000 from the 1.091 million originally reported for the previous month, reflecting a 9.7 percent decrease.

Meanwhile, building permits fell 3.0 percent to an annual rate of 986,000 in December from the revised November rate of 1.017 million. Building permits, an indicator of future housing demand, had been expected to show a more modest 1.015 million decrease.

A Federal Reserve report on Friday showed Industrial production in the U.S. to have increased 0.3 percent in December after jumping by a revised 1.0 percent in November. The increase was in line with economists' estimates, while the previous month's growth was downwardly revised from 1.1 percent.