Crude Oil Ends Marginally Higher As Dollar Weakens

(RTTNews) - U.S. crude oil ended slightly higher Friday, with the dollar trading lower against some major currencies with investors turning to profit-taking. Oil prices found support in some recent upbeat macroeconomic data with inventories dropping sharply for a third straight week. For the week, crude oil added a near 2 percent, recording a fourth straight week of gain.

During the week, oil tracked a more-than-expected drop in weekly inventories with investor sentiments soaring after the Federal Reserve Chairman Ben Bernanke said there was no set time line to start tapering the quantitative easing program.

Light Sweet Crude Oil futures for September delivery, the most actively traded contract, edged up $0.06 to close at $107.87 a barrel on the New York Mercantile Exchange Friday.

Crude prices for September delivery scaled a high of $108.43 a barrel intraday and a low of $106.15.

Light Sweet Crude Oil futures for August delivery gained $0.01 to close at $108.05 a barrel, with a high of $109.32 and a low of $107.48.

Yesterday, oil settled higher tracking rising global equity markets on some better-than-expected initial job claims data from the U.S., following a more-than-expected drop in weekly crude oil inventories earlier in the week. Investors also digested the Federal Reserve Chairman Ben Bernanke's statement before the Senate Banking Committee, indicating there was no set time line to start tapering down the Fed's quantitative easing program.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 82.61 on Friday, down from 82.79 late Thursday in North American trade. The dollar scaled a high of 82.94 intraday and a low of 82.53.

The euro traded higher against the dollar at $1.3139 on Friday, as compared to $1.3109 late Thursday in North America. The euro scaled a high of $1.3150 intraday and a low of $1.3090.

In economic news from the eurozone, Germany's producer price inflation accelerated in June, in line with economists' expectations, latest data showed. The producer price index increased 0.6 percent on an annual basis in June, following a 0.2 percent gain in May, the Federal Statistical Office said. The growth rate for June was in line with economists' forecast.

The U.K. public sector net borrowing, excluding interventions, declined to GBP 8.5 billion in June from GBP 11.9 billion last year, data from the Office for National Statistics showed. The ONS said PSNB has been reduced by GBP 3.9 billion of cash transfers from the Asset Purchase Facility Fund to government. If these transfers are excluded then public sector net borrowing in June 2013 was GBP 12.4 billion.

In a bid to reduce financing costs for companies, improve independent pricing, and better allocation of financial resources, China's central bank announced removal of all controls on lending rates of banks, effective Saturday. In a statement on Friday, the People's Bank of China said it will scrap a floor on lending rates set at 70 percent of the benchmark rate.