Crude oil prices are lower Friday morning, extending the previous session’s steep decline.
Crude oil futures for December delivery are down $0.54 or 0.78 percent at $80.50 a barrel, after declining to $80.32, the lowest level this week. A move below $79.10 would take crude to a new 2-year low.
On Thursday, crude oil futures ended down $1.08 or 1.3 percent to close at $81.12 a barrel, as dollar rose against major currencies on the back of a report showing U.S. GDP to have risen more than expected in the third quarter.
Data showing a smaller than expected increase in crude oil inventories last week failed to support crude as worries about excess supply grew after a report from the U.S. Energy Information Administration showed that oil production rose to nearly 9 billion barrels a day — the most in over three decades.
On Wednesday the Federal Reserve announced the end of its monthly asset buying program, QE3. The Fed said interest rates may remain around record lows for a “considerable time,” but added that rate hikes may happen sooner than markets expect if the economic recovery continues to gather steam. The Fed now believes under-utilization of labor resources to be gradually diminishing.
Meanwhile, natural gas for December is up $0.097 or 2.53 percent at $3.924 per million btu.
The U.S. Commerce Department will release its personal income and spending report for September at 8:30 am ET. Around the same time, the Labor Department will release its employment cost index for the third quarter.
San Francisco Federal Reserve Bank President John Williams will take part in a panel discussion at the South African Reserve Bank in Pretoria at 9 am ET.
At 9:45 am ET, MNI Indicators will release the results of its manufacturing survey for the Chicago region, while Reuters and the University of Michigan are due to release the results of their final consumer sentiment survey at 9:55 am ET.
The material has been provided by InstaForex Company – www.instaforex.com