Crude Oil Ends Sharply Lower; Sheds 6.3% For Week

(RTTNews) - U.S. crude oil plummeted to end sharply lower Friday, on some easing supply scenario after reports that Libyan oil production and export would be back to normal, even as the dollar trended higher against a basket of major currencies. Investors largely ignored the official U.S. crude oil stockpile weekly report that showed a more-than-expected decline in crude inventories, and increases in gasoline and distillate supplies.

Oil futures shed about 6.3 percent for the week.

The U.S. Energy Information Administration's weekly crude oil report showed commercial crude oil inventories decreased 7.0 million barrels to 360.60 million barrels last week, but were above the upper limit of the average range for this time of year. Analysts expected crude oil inventories to drop by 2.20 million barrels last week. Total motor gasoline inventories moved up 0.80 million barrels last week, after shedding 0.60 million barrels in the prior week, and are in the upper half of the average range.

Light Sweet Crude Oil futures for February delivery, the most actively traded contract, dropped $1.48 or 1.5 percent to close at $93.96 a barrel on the New York Mercantile Exchange Friday.

Yesterday, oil lost 3 percent to settle near a one-month low after the dollar strengthened against a basket of major currencies and on news reports of oil exports and production in Libya returning to normal eased supply concerns considerably. It was the biggest single-day decline in about 14 months. Oil prices were also impacted after some soft manufacturing data out of China, the second largest energy consumer in the world, fueling demand growth worries. Reports of increased exports from South Sudan also raised fears of a supply glut.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.76 on Friday, up from its previous close of 80.601 late Thursday in North American trade. The dollar scaled a high of 80.80 intraday and a low of 80.49.

The euro traded lower against the dollar at $1.3603 on Friday, as compared to its previous close of $1.3672 late Thursday in North America. The euro scaled a high of $1.3671 intraday and a low of $1.3594.

In economic news, eurozone broadest measure of money supply grew at a slightly faster pace in November, data from the European Central Bank showed. The annual growth rate of M3 was 1.5 percent in November compared with 1.4 percent in October. The annual growth rate of M1 stood at 6.5 percent in November.

Elsewhere, U.K. mortgage approvals increased for the ninth consecutive month in November, the Bank of England said. The number of loans approved for house purchases was 70,758 in November, up from 68,029 in October. Approvals also exceeded the 69,700 level forecast by economists.

Meanwhile, China's official non-manufacturing Purchasing Managers' Index fell to 54.6 in December from 56.0 in November due to a slowdown in the construction and service sectors, a report from the China Federation of Logistics and Purchasing showed, increasing risk aversion.