Oil mixed in Asia after US data shows slower GDP growth
Thursday, 26 November 2009
SINGAPORE, Nov 25 (AFP): Oil was mixed in Asian trade Wednesday as traders continued to digest slower-than-expected third quarter United States growth data, analysts said.
New York's main contract, light sweet crude for January delivery, fell seven cents to 75.95 dollars a barrel.
Brent North Sea crude for January delivery rose 12 cents to 76.58 dollars.
The US Commerce Department on Tuesday said the economy grew an annual 2.8 per cent in the September quarter, down from last month's estimate of 3.5 per cent.
The data show the world's biggest economy appearing to emerge from recession after several quarters of shrinkage, but with less momentum than previously thought.
"Although the US economy expanded for the first time in the third quarter after a year of contraction, the government's revised figure pointed to weakness for the economy," analysts from Singapore's United Overseas Bank said in a report.
"Furthermore, despite the positive number and with many saying that the US recession is over, an official declaration has yet to come from the private National Bureau of Economic Research, seen as the official arbiter of business cycles."
Most economists say the US recovery from its worst recession in decades appears to be on track, but could be derailed by rising unemployment, which hit a 26-year high of 10.2 per cent in October.
As unemployment in the US, the world's biggest energy user, remains high due to the recession demand for oil has tumbled, with prices way down from their record above 147 dollars seen in July last year.
New York's main contract, light sweet crude for January delivery, fell seven cents to 75.95 dollars a barrel.
Brent North Sea crude for January delivery rose 12 cents to 76.58 dollars.
The US Commerce Department on Tuesday said the economy grew an annual 2.8 per cent in the September quarter, down from last month's estimate of 3.5 per cent.
The data show the world's biggest economy appearing to emerge from recession after several quarters of shrinkage, but with less momentum than previously thought.
"Although the US economy expanded for the first time in the third quarter after a year of contraction, the government's revised figure pointed to weakness for the economy," analysts from Singapore's United Overseas Bank said in a report.
"Furthermore, despite the positive number and with many saying that the US recession is over, an official declaration has yet to come from the private National Bureau of Economic Research, seen as the official arbiter of business cycles."
Most economists say the US recovery from its worst recession in decades appears to be on track, but could be derailed by rising unemployment, which hit a 26-year high of 10.2 per cent in October.
As unemployment in the US, the world's biggest energy user, remains high due to the recession demand for oil has tumbled, with prices way down from their record above 147 dollars seen in July last year.