Oil hits 3-month highs as strong U.S. consumer spending underpins growth hopes

Published 27/12/2019, 02:58
© Reuters.
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TOKYO, Dec 27 (Reuters) - Oil prices rose on Friday, hitting

three-month highs after data showed record online spending by

U.S. consumers, stoking faith in the world's no. 1 economy even

before the hoped-for end to the trade war between Washington and

Beijing.

Brent crude LCOc1 futures were up 13 cents, or 0.2%, at

$68.05 a barrel at 0150 GMT, while the West Texas Intermediate

CLc1 contract was up 13 cents, or 0.2%, at $61.81 a barrel.

A survey on Thursday showed that online holiday purchases by

U.S. consumers reached a record, beating analysts' expectations

and sending U.S. stocks to fresh. MKTS/GLOB

U.S. consumers are "showing few signs of tightening their

purse strings, which is positive for oil also," said Stephen

Innes chief Asia market strategist at AxiTrader.

Oil prices have also been buoyed by robust hopes that the

New Year will usher in an end to the long-running U.S.-China

trade tariff war, a dispute that has overshadowed global

economic growth prospects and left questionmarks over future

demand for crude.

The lingering ripple effect of the trade row showed up again

in data from Japan, the world's third-biggest economy, on Friday

showing that industrial output shrank for a second month in

November. Still, the price Brent has jumped more than a quarter in

2019, while WTI is up around 35%, boosted by moves by the

Organization of the Petroleum Exporting Countries (OPEC) and

other producers, including Russia, to curb production. Earlier

this month OPEC and its allies agreed to extend and deepen those

cuts.

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