NYMEX crude falls sharply in Asia as over-supply worries weigh

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Investing.com - Crude oil prices dipped sharply in Asia on Friday, extending overnight losses as over-supply worries weighed.

On the New York Mercantile Exchange, West Texas Intermediate crude oil futures for delivery in January traded at $58.97 a barrel, down 1.64%, after hitting an overnight session low of $60.10 a barrel and off a high of $61.67 a barrel.

Brent crude, a gauge of global prices, fell 0.9% to $63.68 a barrel on ICE Futures Europe on Thursday.

Overnight, an upbeat U.S. retail sales report strengthened the dollar and weakened oil on Thursday, though losses were seen as limited as the report also fueled hopes for more sustained economic recovery, which should boost demand for fuel and energy.

A stronger greenback tends to make oil a less attractive commodity on dollar-denominated exchanges, especially in the eyes of investors holding other currencies.

The U.S. Commerce Department reported earlier that retail sales rose 0.7% last month, beating expectations for a gain of 0.4%.

October's retail sales growth figure was revised up to 0.5% from 0.3%.

Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.

Core retail sales, which exclude volatile transportation items, advanced 0.5% in November, easily surpassing forecasts for a 0.1% increase. Core sales in October rose by 0.4%.

Retail sales correspond closely with the consumer spending component of the government's gross domestic product report. Consumer spending accounts for as much as 70% of U.S. economic growth.

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