Crude Oil Ends Near $106, Gains 2.6% For Week

(RTTNews) - U.S. crude oil ended sharply higher on Friday, after the Federal Reserve's assurance on its monetary stimulus support and some upbeat earnings from the financial sector that lifted hopes for higher energy demand with continued economic recovery. Prices were further aided by continued concerns over oil supply disruptions from the Middle East. Oil prices gained 2.6 percent for the week.

Investors also weighed some inflation concerns after the U.S. Labor Department's producer price index rose by 0.8 percent in June following a 0.5 percent increase in May. Economists expected the growth to match the increase seen in the previous month. Nonetheless, the inflation concerns were offset by some better than expected earnings news from financial giants JP Morgan (JPM) and Wells Fargo (WFC).

Light Sweet Crude Oil futures for August delivery, the most actively traded contract, jumped $1.04 or 1 percent to close at $105.95 a barrel on the New York Mercantile Exchange Friday.

Crude prices for August delivery scaled a high of $106.07 a barrel intraday and a low of $104.36.

Yesterday, oil leveled off from its 16-month high after the International Energy Agency projected increased supply from sources outside the Organization of Petroleum Exporting Countries, which could outstrip demand.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 83.00 on Friday, up from 82.75 late Thursday in North American trade. The dollar scaled a high of 83.24 intraday and a low of 82.72.

The euro traded lower against the dollar at $1.3061 on Friday, as compared to $1.3097 late Thursday in North America. The euro scaled a high of $1.3102 intraday and a low of $1.3000.

In economic news from the U.S., the Labor Department's producer price index rose 0.8 percent in June following a 0.5 percent increase in May. Economists expected the growth to match the increase seen in the previous month. Excluding food and energy prices, core producer prices edged up by 0.2 percent in June after inching up by 0.1 percent in May. The increase in core prices matched economist estimates.

Meanwhile, according to a report released by Thomson Reuters and the University of Michigan Consumer sentiment in the U.S. has seen a modest deterioration in the month of July, with the index dipping to 83.9 in July from the final June reading of 84.1. Economists expected the index to remain unchanged compared to the previous month.

Elsewhere, eurozone industrial production declined 0.3 percent month-on-month in May, in line with expectations, reversing April's 0.5 percent rise, data from Eurostat showed. The decline was driven by a 1.5 percent fall in capital goods output and 2.3 percent decrease in durable consumer goods. On a yearly basis, industrial production slipped 1.3 percent, more than double the 0.6 percent drop seen in April. The annual rate of decline matched economists' expectations.