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Crude Oil Rallies As GDP Report Boosts Demand Expectations

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Crude oil turned sharply higher again on Friday and closed at a four-week high. A better-than-expected gross domestic product report boosted the outlook for energy demand.

Light sweet crude for September delivery surged to $69.45, up $2.51 on the session. Prices touched as high as $69.74 after earlier hitting as low as $64.96. With the rebound, oil finished a choppy week up $1.63 per barrel. September oil fell $5.14 in the month of July, briefly touching below $60.

Earlier in the week, prices fell as Energy Department data showed U.S. commercial crude oil inventories increased by 5.1 million barrels during the week ended July 24.

In the big economic news, a U.S. Commerce Department report revealed gross domestic product fell 1% in the second quarter. Economists had expected GDP to fall at a 1.5 percent pace. This follows a 6.4-percent contraction in the first quarter.

The Chicago purchasing manager's index for July came in at 43.4. A reading of 42.0 was projected, compared to a 39.9 in June.

The dollar tumbled versus the euro and moved within a penny of its 2009 lows. The buck also fell to a four-week low against the pound.

(Market News Provided by RTTNews)

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