WASHINGTON (dpa-AFX) - U.S. crude oil futures snapped a three-session win streak to close lower Friday, on uncertainties about Greece's austerity deal with new developments unfolding in the debt-ridden country. Prices were also impacted by demand concerns and a strengthening dollar.
The Greek drama took a twist with four ministers resigning from the cabinet suggesting all is not well with the deal agreed on Thursday. The resignations came amidst widespread protests in Greece with a 48-hour strike over the austerity proposals. There were several reports of clashes between protesters and riot police in Athens and several other Greek towns and cities on Friday.
Late Thursday, EU finance ministers said they will hold back the euro 130-billion bailout package until Greece lawmakers pass the austerity measures into law.
Light Sweet Crude Oil futures for March delivery dropped $1.17 or 1.2 percent to settle at $98.67 a barrel on the New York Mercantile Exchange on Friday. Crude prices had scaled a high of $99.89 a barrel intraday and a low of $97.32 a barrel.
Earlier today, the International Energy Agency revised down global oil product demand forecast by 0.30 million barrels per day (mbd) to 89.90 mbd as the economic growth rate has been reduced to 3.3 percent from 4.0 percent previously.
Overnight, data from the General Administration of Customs showed trade surplus in China widened to $27.3 billion in January from $16.5 billion in December, amid lower imports
Yesterday, the Organization of the Petroleum Exporting Countries trimmed its world oil demand growth forecast by 0.12 mbd to 0.90 mbd for 2012, citing recent economic setbacks.
Investors also weighed in the impact of the CME Group's move to cut the collateral for traders to trade its benchmark crude-oil, gold and other futures. CME is to cut the costs to trade its light, sweet crude-oil contract on the New York Mercantile Exchange. Such trading costs will also be cut for benchmark gold, silver and copper futures. The new rates will come into force after close of business on Monday.
Snapping a three day decline, the dollar index, which tracks the U.S. unit against six major currencies, climbed to 79.028 on Friday from 78.582 in late Thursday trade.
The euro traded at $1.3179 on Friday, down from $1.3287 late Thursday. The euro had scaled a 2-month high of $1.3321 in intraday trading yesterday.
In economic news, the U.S. Commerce Department said U.S. exports came in at $178.8 billion while imports were recorded at $227.6 billion in December, resulting in an increase in the trade deficit to $48.8 billion from the $47.1 billion in November.
Consumer sentiment in the U.S. has deteriorated by more than expected in the month of February, according to a release by Reuters and the University of Michigan on Friday, with the drop largely reflecting a more negative assessment of current economic conditions. The consumer sentiment index dropped to a reading of 72.5 in February from January's final reading of 75.0. Economists expected the index to edge down to 74.8.
Elsewhere, Germany's inflation, as measured by the EU methodology, remained steady at 2.3 percent in January, unrevised from the flash estimate, a report from the Federal Statistical Office showed. Month-on-month, the indicator dipped 0.5 percent.
UK's output price inflation eased in January to the lowest level since November 2010, the Office for National Statistics said. Output prices for home sales of manufactured products rose 4.1 percent year-on-year in January, compared to a rise of 4.8 percent in the previous month.
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