Crude Oil Ends Higher On Weak Dollar; Sheds 1.1% For Week

(RTTNews) - U.S. crude oil surged to end higher on Friday, after the dollar weakened against a basket of some major currencies on some mixed economic data with the final U.S. GDP report coming in better than expected.

Nevertheless, the gains were capped amid signs that OPEC will continue production at current levels, even as Saudi Arabia and the big oil producers in the OPEC cartel refuse to call an emergency meeting to deal with the recent collapse in oil prices. A top Saudi official earlier this week said he expects global oil demand to rise by year's end.

Crude oil futures shed 1.1 percent for the week.

Meanwhile, the weekly oil rig count from Baker Hughes earlier today showed the number of U.S. rigs actively drilling for oil and natural gas as on February 27 dropped by 43 rigs to 1,267. The count is down 502 rigs from the same period last year. The oil rigs count dropped 33 to 986.

Economic growth in the U.S. slowed more than previously estimated in the final three months of 2014, a revised report from the Commerce Department showed Friday. However, despite the downward revision, the pace of GDP growth during the fourth quarter was still above economists' estimates.

Business activity in the Chicago area unexpectedly contracted in February to its lowest level since July of 2009 and the first contraction since April of 2013.

Consumer sentiment in the U.S. deteriorated less than previously estimated in February, but below the eleven-year high set in January, a report from the University of Michigan showed Friday.

Light Sweet Crude Oil futures for April delivery, the most actively traded contract, jumped $1.59 or 3.3 percent to settle at $49.76 a barrel on the New York Mercantile Exchange Friday.

Crude prices for April delivery scaled a high of $49.94 a barrel intraday and a low of $48.46.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 95.25 on Friday, down from its previous close of 95.26 on Thursday in late North American trade. The dollar scaled a high of 95.36 intraday and a low of 94.91.

The euro trended lower against the dollar at $1.1193 on Friday, as compared to its previous close of $1.1198 on Thursday in late North American trade. The euro scaled a high of $1.1247 intraday and a low of $1.1176.

On the economic front, U.S. gross domestic product increased by a downwardly revised 2.2 percent in the fourth quarter compared to the previously reported 2.6 percent growth. The growth represents a notable slowdown from the 5.0 percent jump seen in the third quarter.

Despite the downward revision, the pace of GDP growth during the fourth quarter still remains slightly above economists' estimates for a 2.1 percent increase.

Consumer sentiment in the U.S. deteriorated less than previously estimated in February, the University of Michigan said Friday. The final reading on the consumer sentiment index for February came in at 95.4 compared to the preliminary reading of 93.6. This is well above economists' estimates of 94.0 but below the eleven-year high of 98.1 set in January.

Pending home sales in the U.S. rebounded in January, a report from the National Association of Realtors showed Friday, reflecting improved buyer demand. NAR said its pending home sales index climbed 1.7 percent to 104.2 in January after falling 1.5 percent to an upwardly revised 102.5 in December.

Business activity in the Chicago area unexpectedly contracted in February to its lowest level since July of 2009 and the first contraction since April of 2013, a report from MNI Indicators showed Friday. The MNI Chicago business barometer tumbled to 45.8 in February from 59.4 in January, with a reading below 50 indicating a contraction in regional business activity. Economists expected the barometer to decline to a reading of about 58.7.

Germany's consumer prices in February rose unexpectedly from a year ago, after declining for the first time in more than five years in the previous month, preliminary data from Destatis revealed Friday. The consumer price index rose 0.1 percent year-on-year following 0.4 percent fall in January. Economists had forecast a 0.3 percent decline. The January decrease was the first since September 2009.

Germany's import prices declined at a slower-than-expected pace in January, yet logged its worst fall in more than five years, figures from Destatis showed Friday. The import price index fell 4.4 percent year-on-year at the start of the year, faster than December's 3.7 percent decline. Economists had forecast a 4.6 percent fall for the month.

Consumer confidence in the United Kingdom held fast in February, the latest survey from research firm GfK showed on Friday with an index score of +1. That was unchanged from the January reading, although it was shy of expectations for +2.

U.K. house prices grew at the slowest pace in nine months in January, the Land Registry reported Friday. House prices grew 6.7 percent year-on-year in January, the same rate of growth as seen in December. The 6.7 percent increase was the weakest growth since last April, when prices gained 6.4 percent.

France's consumer spending grew for the third straight month in January, defying expectations for a decline, figures from the statistical office INSEE showed Friday. Consumer spending rose 0.6 percent from December, when it grew 1.6 percent, which was revised from 1.5 percent. Economists had predicted a 0.3 percent decline.

Meanwhile, France's producer prices declined at the start of the year, INSEE said Friday. The producer price index for the French market fell 3.3 percent year-on-year in January. On a monthly basis, producer prices dropped 0.9 percent in January, the same rate of decrease as in the previous month.