Forexpros – Crude oil futures moved lower Friday as U.S. economic growth slowed for the quarter and markets remain concerned over wrangling in the U.S. Congress on a resolution to the country’s debt ceiling debate.
On the New York Mercantile Exchange light, sweet crude futures for September delivery traded at USD95.81 a barrel in mid-day U.S. trade, falling 1.45%, after hitting a daily high of 97.40.
Crude futures have posted four straight weekly gains.
Earlier in the day, the U.S. Bureau of Economic Analysis reported that U.S. GDP rose just 1.3% in the quarter, after a 1.9% gain in the previous three-month period. Economists had predicted a 1.7% increase.
Meanwhile, U.S. Congressional negotiations to reach a deal to raise the nation’s debt ceiling limit remained unresolved, with rival proposals expected to reach both the House of Representatives and the Senate for votes later in the day.
Dealers remained wary of growth-dependant assets such as crude oil until the prospects for an agreement in the U.S. on raising the debt ceiling become clearer. The traditionally safe-haven U.S. dollar market has suffered from the uncertainty surrounding future U.S. debt sovereignty.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.49% to trade at 74.02.
On the ICE Futures Exchange Brent oil futures for September delivery dropped 0.69% to trade at USD116.44.
Commodity dealers were expected to monitor changing weather conditions in the Gulf of Mexico as Tropical Storm Don threatens the Texas coast and U.S. oil production in the region.