Oil market slips before US data

24th May 2013, Comments 0 comments

Global oil prices fell on Friday in quiet trading as dealers awaited US economic data, analysts said.

Brent North Sea crude for delivery in July dipped nine cents to $102.35 a barrel, one day after striking a three-week low at $100.64 on the back of poor Chinese economic data.

New York's main contract, light sweet crude for July, slipped 35 cents to $93.90 a barrel.

"Volumes are set to be relatively modest today, but some attention will be paid to the US April durable goods orders report," noted analyst Andrey Kryuchenkov at VTB Capital.

Dealers meanwhile set aside news of bright news on eurozone powerhouse economy Germany.

German business confidence rose unexpectedly in May, data showed on Friday, as businesses in Europe's top economy express satisfaction with their situation and become more optimistic about the future.

The Ifo economic institute's closely watched business climate index rose to 105.7 points in May from 104.4 points in April. Analysts had been expecting an unchanged reading this month.

Crude futures had closed little changed on Thursday, recovering from sharper losses earlier in the day caused by weak Chinese manufacturing data.

HSBC bank reported China's manufacturing output contracted in May, raising concerns about energy demand in the world's second-largest economy.

However, traders were looking for buying opportunities after Wednesday's sharp drop and preparing for the long holiday weekend.

US gasoline, or petrol, demand was expected to surge this weekend as the Memorial Day holiday Monday kicks off the summer vacation driving season.

© 2013 AFP

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