Oil stays over $105 amid mixed global growth signs
Oil prices hovered above $105 a barrel Friday, after a big tumble the day before, amid mixed signs about the strength of the global economy and crude demand.
By early afternoon in Europe, benchmark oil for May delivery was up 22 cents to $105.57 in electronic trading on the New York Mercantile Exchange. The contract fell $1.92 to settle at $105.35 per barrel in New York on Thursday.
In London, Brent crude for May delivery was up 69 cents at $123.83 per barrel on the ICE Futures exchange.
Disappointing industrial production figures out of China, Germany and France on Thursday suggested economic growth in Asia and Europe may slow more than previously expected. However, the U.S. reported the number of people seeking unemployment benefits fell to a four-year low last week, reinforcing recent data that suggests the world's biggest economy is improving.
Crude has hovered between $105 and $110 for the last month, up from $75 in October, underpinned by worries that a military strike by Israel or the U.S. on Iran's nuclear facilities could disrupt global supplies.
Saudi Arabia, the world's largest oil producer, sought to quell investor concerns earlier this week by saying that it's prepared to quickly boost crude output by 25 percent if necessary.
"The price of oil has profited from statements by the International Energy Agency, which currently sees no reason to release strategic oil reserves," said analysts at Commerzbank in Frankfurt. "What is more, the U.S. is exerting pressure on China and India to significantly reduce their oil imports from Iran."
Some analysts expect growing crude demand in emerging countries and limited supplies will keep oil prices from falling despite slowing global economic growth.
"With the market characterized by extremely low inventories and stretched spare capacity, oil prices are to likely to remain high," Barclays Capital said in a report. "Given strong emerging market demand and weak non-OPEC supply, the oil price is now likely to be sustained at considerably above $100 per barrel in the long term."
In other energy trading, heating oil was up 0.97 cent to $3.2025 per gallon and gasoline futures added 0.06 cent at $3.3263 per gallon. Natural gas gained 1.5 cents at $2.284 per 1,000 cubic feet.
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Alex Kennedy in Singapore contributed to this report.
