Oil rebounds to over $86 a barrel on US growth

Faster-than-expected economic growth in the United States helped the price of oil reverse early losses on Friday and climb back above $86 a barrel.

By early afternoon in Europe, benchmark oil for December delivery was up 22 cents to $86.27 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 32 cents to finish at $86.05 a barrel in New York on Thursday.

In London, Brent Crude was up 45 cents to $108.94 on the ICE Futures exchange.

The U.S. Commerce Department said gross domestic product grew by an annual 2 percent in the third quarter. That was in contrast to 1.3 percent annual growth in the second quarter and analysts' expectations of a 1.8 percent rise for July-September.

Earlier in the session, the Nymex contract fell to $85, its lowest point since July, driven down by ample supplies and concerns about growth prospects in Europe.

Analysts said the recent fall in oil prices can be partly attributed to ample supplies. Oil has dropped more than 7 percent in the past week.

The Energy Department said Thursday that U.S. oil supplies grew last week by 5.9 million barrels, or 1.6 percent. At 375.1 million barrels, the nation's oil inventory is 11.1 percent above year-ago levels.

"Crude oil prices continue to remain under pressure, following the recent disappointing U.S. earnings results and the tentative economic conditions in Greece and Spain," said a report from Sucden Financial Research in London.

In other energy futures trading in New York:

? Wholesale gasoline added 2.89 cent to $2.6612 a gallon.

? Natural gas lost 4.9 cents to $3.385 per 1,000 cubic feet.

? Heating oil added 1.86 cents to $3.0638 a gallon.

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Pamela Sampson in Bangkok contributed to this report.

Source: http://news.yahoo.com/oil-rebounds-over-86-barrel-us-growth-131226614--finance.html

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