NEW YORK (CNN/Money) - Stock futures pared earlier gains after the latest reading on the strength of the U.S. economy came in a little lower than expected Friday.

S&P and Nasdaq futures moved off their highs after the government said the economy grew at 3.4 percent annual rate in the second quarter, just slightly below the pace in the first quarter.

Economists surveyed by Briefing.com had forecast GDP -- the broadest measure of the nation's economy -- to show an annual growth rate of 3.5 percent.

Oil prices rose back above $60 a barrel after a fire at a BP oil refinery in Texas.

The September light crude futures contract gained 40 cents to $60.34 a barrel in electronic trading, while September Brent crude rose 43 cents to $59.19.

Major markets in Asia closed higher Friday. Major European markets rose to fresh three-year highs in early trading.

Bond prices edged lower, raising the yield on the 10-year Treasury to 4.21 percent from 4.19 percent late Thursday.

The dollar gained ground against the euro and yen.

In corporate news, China's CNOOC is considering giving up on its $18.5 billion offer to take over U.S. oil producer Unocal Corp. (Research), according to Reuters and Japanese newspaper reports, citing opposition from Congress. A CNOOC spokesman denied the report, saying the $67-a-share bid remains in effect.

If CNOOC pulls out, it would clear the way for Chevron (Research) to buy Unocal for $17 billion, or $64 a share in cash and stock. Chevron is also set to report second-quarter earnings before the market opens.

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