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Oil advanced after economic growth in the U.S., the world's biggest crude-consuming nation, surged at the fastest pace in more than a decade in the third quarter.
West Texas Intermediate advanced as much as 2.9 percent in New York, while Brent gained as much as 2.3 percent in London. Gross domestic product grew at a 5 percent annual rate from July through September, the biggest advance since 2003, revised figures from the Commerce Department showed today in Washington. Futures pared gains as a gauge of the dollar climbed to a five-year high.
Oil is set for the biggest annual loss since 2008 amid the highest U.S. output in more than three decades and signs of slowing global demand growth. U.S. crude supplies probably fell for a second week, a Bloomberg survey showed before government data tomorrow. Saudi Arabia, OPEC's biggest producer, doesn't plan to pump less "whatever the price is," Oil Minister Ali Al-Naimi told the Middle East Economic Survey yesterday.
"We had a strong GDP number today and that implies a certain amount of demand that we weren't looking for previously," Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York, said by phone. "We're getting some headwinds from the dollar, which is at multiyear highs, but I think the strong GDP will keep us higher."
WTI for February delivery increased 59 cents, or 1.1 percent, to $55.85 a barrel at 10:09 a.m. on the New York Mercantile Exchange. The volume of all futures traded was about 8.7 percent below the 100-day average for the time of day. Futures are down 43 percent this year.
Brent for February settlement gained 45 cents, or 0.8 percent, to $60.56 a barrel on the London-based ICE Futures Europe exchange. Volume was 41 percent below the 100-day average. Prices are down 45 percent in 2014. The European benchmark traded at a $4.71 premium to WTI.
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