Forexpros – Crude oil futures traded lower Friday as S&P slashing of Spain’s long term credit rating renewed global growth worries and demand concerns.
On the New York Mercantile Exchange, light, sweet crude futures for June settlement traded at USD104.22 a barrel, down 0.32%.
Oil hit a high of USD104.44 a barrel and a low of USD103.75 a barrel during the trading session.
Sparking the oil demand worries, S&P slashed Spain’s long term debt rating to BBB+ reporting that the outlook is negative in the face of the recession undermining efforts to cut the budget deficit.
Spain’s jobless rate spiked to 24.4%, hitting an eighteen year high, the National Statistics Institute reported.
In oil bullish news, data indicated Switzerland’s KOF economic barometer rose more-than-expected to a seasonally adjusted 0.40 last month from 0.09 in the preceding month whose figure was revised up from 0.08.
Analysts had expected the KOF economic barometer to rise to 0.26 last month.
Meanwhile, in Japan, the central bank expanded its plan for government-bond purchases by 10 trillion yen to support the economy.
Investors are awaiting the U.S. GDP later in the session.
Economists have projected the GDP to have grown at 2.5% annual rate, down from the 3% gain in the previous 3 months adding to the global slowdown fears.
Meanwhile, Iran’s envoy to Moscow stated that Iran is considering a Russian proposal to avert the pending additional oil sanctions.
Helping to ease Iranian tensions, Israel’s Army Chief of General Staff Benny Gantz stated, ” Iran’s leadership is rational and isn’t seeking to build a nuclear bomb”, earlier in the week.
On the ICE Futures Exchange, Brent oil futures for June delivery traded down by 0.19% at USD119.69 a barrel.
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