Crude Oil Ends Lower On Soft U.S. Data

(RTTNews) - U.S. crude oil ended lower for a second straight session Friday, on some weak U.S. home sales data with investors continuing to mull over demand growth prospects after an official Energy Information Administration weekly oil report yesterday showed inventories in the U.S. to have moved up less than expected last week.

Oil prices gained about 1.9% for the week, a sixth straight weekly gain..

In economic news, stats from the National Association of Realtors on Friday showed existing home sales in January dropped more than expected, providing further evidence of weakness in the housing market. Home buyers were constrained by tight credit, limited inventory, higher prices and higher mortgage interest rates.

The existing home sales report covers the largest part of the housing market, providing the clearest picture yet about the health of the market. The soft numbers are part of a string of disappointing housing data to have come out lately. Cumulatively, these have pointed to a slowdown in this key part of the economy.

The continued violence and widespread protests in Ukraine against President Viktor Yanukovych has also had an impact on oil prices. Nonetheless, President Yanukovych and opposition leaders have agreed to a peace pact which could also see the release of former Prime Minister Yulia Tymoshenko. At least 70 people are believed to have died on Thursday, according to reports citing opposition activists and witnesses.

Light Sweet Crude Oil futures for April delivery, the most actively traded contract, shed $0.55 or 0.5 percent to close at $102.20 a barrel on the New York Mercantile Exchange Friday.

Crude prices for April delivery scaled a high of $103.04 a barrel intraday and a low of $102.28.

Natural gas for March gained $0.07 or 1.2 percent, to close at $6.135 per mBtu on the New York Mercantile Exchange.

Prices are up 18 percent for the week, due mostly an unusually cold U.S. winter. Temperatures are forecast to warm up this weekend, but late February and early March are expected to be unseasonably cold.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.23 on Friday, down from its previous close of 80.29 late Thursday in North American trade. The dollar scaled a high of 80.41 intraday and a low of 80.18.

The euro traded higher against the dollar at $1.3743 on Friday, as compared to its previous close of $1.3719 late Thursday in North America. The euro scaled a high of $1.3757 intraday and a low of $1.3704.

In economic news from the U.S., the National Association of Realtors revealed sales of previously owned homes, known as existing home sales, fell 5.1 percent in January to an annual rate of 4.62 million. Economists expected the rate of sales to come in at 4.65 million. January's figure was also 5.1 percent below the pace seen at the same time of 2013.

Nevertheless, home prices showed strength in January with a 10.7 percent increase, compared to a year ago, as the median existing home price came in at $188,900.

British retail sales declined at the sharpest pace since April 2012 as food store sales weakened notably after Christmas, data from the Office for National Statistics showed on Friday. Retail sales volume, including automotive fuel, fell 1.5 percent month-on-month in January, the first decline in three months and the biggest since April 2012. Economists expected sales to fall 1 percent, after a 2.5 percent rise in December.

Meanwhile, U.K. budget surplus declined unexpectedly in January from the same period of last year, official data revealed Friday. Public sector net borrowing excluding temporary effects of financial interventions was -GBP 4.7 billion in January compared to -GBP 6 billion last year, the Office for National Statistics said. The surplus was expected to rise to GBP 8 billion.