SINGAPORE, Nov 8:
U.S. Crude futures rose in early Asian trade on Friday as faster than expected economic growth in the world’s top oil consumer revived hopes of increased demand.
U.S. Gross domestic product (GDP) growth accelerated in the third quarter at 2.8 percent annual rate, the quickest pace in a year, after expanding at a 2.5 percent clip in the second quarter.
But the recovery also supported the case for a cutback in stimulus by the Federal Reserve later this year, which would reduce the supply of dollars and make dollar-denominated assets such as oil more expensive for holders of other currencies.
U.S. Oil gained 39 cents to $94.59 by 0021 GMT, after ending 60 cents lower under pressure from a stronger dollar. Brent crude settled $1.78 lower, losing $2 at one point to trade as low as $103.24, its lowest mark since July 2.
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