Crude Oil Ends Higher, But Sheds About 3.1% For Week

(RTTNews) - U.S. crude oil rebounded to end higher on Friday after having plummeted to a 6-year low yesterday, on some upbeat economic data from the U.S. notwithstanding concerns of a supply glut and an improvement in oil rig count for the week.

Crude oil is down about 3.1 percent this week, due mostly to China's currency devaluation.

Nonetheless, crude oil surrendered much of the gains toward close on concerns over China and Greece, and with supply glut fears persisting.

Oil was under pressure after oil services firm, Baker Hughes Inc. in its weekly rig count on Friday said U.S. oil rigs actively drilling for oil rose by 2 units to 672 rigs. This is the fourth consecutive week of increase.

In some upbeat economic news, producer prices in the U.S. rose more than expected in July, rising for a third straight month, while industrial production increased more than expected in July, rising at its strongest pace in nearly eight months.

The string of positive data augurs well for the U.S. economy in the third quarter, with some upbeat retail sales data for July topping the week.

However, some disappointing eurozone economic data exacerbated demand concerns, with eurozone domestic product growth slowing to 0.3 percent from 0.4 percent in the first quarter, falling short of a forecast of 0.4 percent gain.

Light Sweet Crude Oil futures for September delivery, the most actively traded contract, gained $0.27 or 0.6 percent, to settle at $42.50 a barrel on the New York Mercantile Exchange Friday.

Crude prices for September delivery scaled a high of $42.96 a barrel intraday and a low of $41.35.

On Thursday, crude oil futures for September delivery, plummeted $1.07 or 2.5 percent, to settle at $42.23 a barrel, as concerns over China eased with the Chinese central bank providing clarification of the devaluation of yuan and the dollar trending higher after some upbeat economic data from the U.S.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 96.54 on Friday, up from its previous close of 96.36 in late North American trade on Thursday. The dollar scaled a high of 96.68 intraday and a low of 96.09.

The euro trended lower against the dollar at $1.1121 on Friday, as compared to its previous close of $1.1151 in North American trade late Thursday. The euro scaled a high of $1.1190 intraday and a low of $1.1099.

In economic news, producer prices in the U.S. rose slightly more than expected in July, partly reflecting an increase in prices for services, the Labor Department said Friday. The producer price index edged up 0.2 percent in July after climbing by 0.4 percent in June. Economists expected the index to inch up by just 0.1 percent.

Consumer sentiment in the U.S. deteriorated unexpectedly in August, a report from the University of Michigan showed Friday. The preliminary reading on the consumer sentiment index for August came in at 92.9 compared to the final July reading of 93.1. Economists expected the index to climb to a reading of 93.5.

U.S. industrial production increased more than expected in July, with manufacturing output showing a notable rebound, a Federal Reserve report showed Friday. Industrial production climbed 0.6 percent in July after inching up 0.1 percent in June. Economists expected production to increase by about 0.4 percent.

Eurozone economic growth slowed slightly in the second quarter despite slight improvement in Germany, as France came to a halt, restoring the divergence between the two largest euro area economies. Gross domestic product expanded 0.3 percent sequentially in the June quarter, preliminary data from Eurostat showed Friday. The rate of growth was expected to remain unchanged at 0.4 percent.

U.K. construction output recovered in June albeit at a slower than expected pace, the Office for National Statistics revealed Friday. Construction output grew 0.9 percent in June from down 1 percent May. Nonetheless, it was weaker than the expected growth of 2 percent.