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Brent crude held above $113 on Friday, on track to post a second week of gains as positive economic data from the United States and China lifted the fuel demand outlook at the world's two largest oil consumers.
The world economy may be gaining traction after a sluggish 2012. Manufacturing in China and the United States grew this month at the quickest pace in about two years while data suggesting German growth picked up boosted hopes for a swifter euro zone recovery.
Brent crude for March delivery fell 24 cents to $113.04 a barrel by 8.43am UAE time. US crude edged down 16 cents to $95.79.
"Economic statistics from the US and China support an outlook of moderate growth in 2013 against a backdrop of a lower risk environment," Ric Spooner, chief market analyst at CMC Markets in Sydney said.
"Any improvement in industrial demand will help the overall oil demand."
In addition to the encouraging manufacturing data, employment in the United States also improved with the number of new claims for jobless benefits dropping to a five-year low last week. The positive global economic data has boosted investor appetite for riskier assets, buoying global equities and some commodities.
In the United States, investors are closely watching the Seaway oil pipeline, after its operator reduced on Wednesday the oil flow rate from Cushing to U.S. Gulf Coast by more than half, to 175,000 barrels per day. The 400,000 bpd pipeline is a critical link intended to ease the glut at the WTI contract's delivery point in Cushing, Oklahoma.
Despite the volume cut, front-month U.S. crude prices are on track for a seventh straight week of gains. Trading sources have said the pipeline could be back to full capacity soon.
Its operator Enterprise Products Partners has no timetable for restoring full flows through the pipeline, a company spokesman said.
The spread between Brent and West Texas Intermediate crude prices held around $17, after widening by nearly $2 on Wednesday.
In weekly inventories data, a larger than expected fall in gasoline stocks lifted RBOB gasoline futures by nearly 1 percent on Wednesday.
US crude stockpiles rose last week as refineries in the country processed less oil, government data from the Energy Information Administration showed.
Crude inventories rose 2.81 million barrels in the week to January 18, compared with expectations for a 1.8 million barrel rise.
Contrary to all their claims of massive sales I get the feeling they need this money to pay their staff salaries. What sense does it make to restrict... more
Tuesday, 18 June 2013 7:44 PM - peter peterGood boy! Very Good boy! Nice poodle! more
Tuesday, 18 June 2013 1:16 PM - Dildo DagginsSpot On Bobby more
Tuesday, 18 June 2013 4:21 PM - AliIt's typical and pretty sad that people here only blame the Saudis. What these people seem to forget is that Indian institutions and contractors are the... more
Monday, 17 June 2013 9:06 AM - narendramodi
@anguilla: Kalba town is part of the Sharjah Emirate.
along with khor fakkan and dibba al hisn.
http://en.wikipedia.org/wiki/Sharjah_%28emirate... more
I am wondering why this article is being published here? it is really useless. anyway, I in certain ways agree with the Mufti. god bless Saudi Arabia more
Tuesday, 18 June 2013 9:27 AM - Faisal@ Henry, enough of whining, the host country does not need you, it is your employer that needs your services and you know well enough that you can be made... more
Saturday, 1 June 2013 11:32 AM - ZainOrganizations like HRW, Green peace, ILO, UNHCR are so self serving that it is amazing they still exist! they spend 60/70 percent of their budgets (meant... more
Thursday, 30 May 2013 7:53 PM - NavinIt's typical and pretty sad that people here only blame the Saudis. What these people seem to forget is that Indian institutions and contractors are the... more
Monday, 17 June 2013 9:06 AM - narendramodi
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