Forexpros – Crude futures snapped a winning streak as less-than-stellar U.S. gross domestic product figures indicated that growth in the world’s largest economy will cool in the coming months and need less oil and derivatives in the process.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at USD99.42 a barrel, down 0.28%.
The commodity hit an earlier session high of USD100.61 and a low of USD99.16.
In the U.S., the Commerce Department reported that fourth-quarter gross domestic product figures came in at 2.8%, slightly less than expected.
However, analysis of the data revealed that a good chunk of growth came from businesses replenishing inventories and not investing in more job-creating endeavors for future growth.
Considering how consumer spending will ease now that the holidays have passed, economists now predict a sluggish first quarter, which sent oil falling.
Ongoing tensions between the West and Iran over the Middle East country’s nuclear ambitions continue although Tehran has said it was willing to participate in talks over the matter.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for March delivery were up 0.44% and trading at USD111.28 a barrel, up USD11.86 from its U.S. counterpart.
The gap in price between the two contracts hovers toward the higher end of a range between a nearly USD20.00 all-time high and a historical spread of USD1.00.
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