Brent Strong Ahead Of Payrolls Data

Brent crude oil climbed above $111 on Friday morning as investors looked to fresh US jobs data, due out later in the day, for clues about the number one oil consumer's appetite. The commodity traded at $111.26 at 7:00 GMT after Thursday's US data helped boost prices. According to Reuters , the Commerce Department released a report which showed that the US' annual GDP rate increased at 3.6 percent rather than the originally estimated 2.8 percent. The figure marked the nation's largest gain since the beginning of 2012, however inventories were responsible for nearly half of the increase. Many analysts were cautious about the optimistic data saying it did not tell the whole story, and that fourth quarter GDP could see a fall. Brent also found support from severe weather as several North Sea oil producers were forced to shut down some platforms for safety reasons. In the North Sea, a large storm on its way to Europe is expected to reach the continent in what many meteorologists have said will be the most severe storm the region has seen in years. Moving forward, investors will likely shift their focus to US nonfarm payrolls, due out later on Friday for further indications that the US economy is picking up. Although a growing US economy is positive for oil demand, it could also have a negative impact on Brent prices as taper talk returns to the market place. A positive surprise in nonfarm payrolls data this week could push the US Federal Reserve to cut down on its stimulus spending earlier than expected.