WASHINGTON (dpa-AFX) - U.S. crude oil futures pared early declines in choppy trading Friday as equities rebounded.
Crude for October delivery edged up $0.07, to $85.37 a barrel on the New York Mercantile Exchange. Futures were up 3.3 percent this week, heading for their first weekly gain since July, and are up 16 percent from the same period last year.
Oil fell as much as 2.8 percent to below $83 a barrel when the Federal Reserve chairman didn't signal a policy change at Jackson Hole, Wyoming, where a year ago he disclosed that the Fed would spur growth through bond buying programmes.
Mr. Bernanke told an annual gathering of global monetary officials that the situation is not precarious enough to warrant a third round of economic stimulus. Bernanke also emphasized on taking steps to reduce long-term deficit, while strongly relating long term economic recovery to strengthened hiring and growth.
With the clouds of uncertainty over Mr. Bernanke's speech dissipating, traders again focused on Hurricane Irene, which was on course to hit the New York area Sunday. The region has 10 operating oil refineries with a capacity of 1.21 million barrels a day, according to the Energy Department.
In economic news, U.S. GDP grew at a slower- than -expected rate in the last quarter. In a report, the Bureau of Economic Analysis said that GDP rose to a seasonally adjusted annual rate of 1.0 percent, from 1.3 percent in the preceding quarter. Analysts had expected U.S. gross domestic product to rise 1.1 percent in the last quarter.
Meanwhile, according to some analysts crude oil may see a drop in coming week as Libyan rebels secure their hold on the country and begin taking steps for exports to resume and return to the pre-conflict period.
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