Crude oil futures were higher during U.S. morning trade on Thursday, following the release of data showing an unexpected drop in U.S. jobless claims last week and after OPEC raised its global oil demand estimates.
On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD97.41 a barrel during U.S. morning trade, climbing 0.6%.
It earlier rose by as much as 0.75% to trade at a session high of USD97.69 a barrel, which was the highest since May 8. Prices touched USD95.17 a barrel on Wednesday, the lowest since December 20, 2011.
Oil prices moved to the highest levels of the session after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 1,000 to 367,000, defying expectations for an increase of 1,000 to 369,000.
Jobless claims have remained below 400,000, a level historically associated with an improving labor market, in 26 of the past 28 weeks.
A separate report showed that the U.S. trade deficit widened more-than-expected in March, as exports increased 2.9% and imports grew 5.2%,
The U.S. trade deficit widened to USD51.8 billion in March from a revised deficit of USD45.4 billion in February, above expectations for a deficit of USD50.0 billion.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Meanwhile, the Organization of Petroleum Exporting Countries, or OPEC, on Thursday said it expects world oil demand to grow by 900,000 barrels a day in 2012, up slightly from 860,000 barrels in its April forecast.
In its monthly oil report for May, OPEC said the stabilization of the U.S. economy and shutdown of Japanese nuclear power plants has stopped the declining trend in demand at least for the short term.
Market sentiment also improved slightly as Greek Socialist leader Evangelos Venizelos was to make a last attempt to form a government on Thursday.
Venizelos, who was the country’s former finance minister, said he would approach all political party leaders and try to get New Democracy, Syriza and Democratic Left to form a pro-European national unity government.
Prices were under pressure during Asian trading hours following the release of data showing Chinese exports and imports grew less-than-expected in April.
In a report, the Customs General Administration of China said the nation’s trade surplus widened to USD18.42 billion in April from USD5.35 in the previous month.
The data showed that exports rose by 4.9% in April from a year earlier, below expectations for growth of 9.1% and slowing from 8.9% in March.
Imports grew by a modest 0.4% in April, significantly below expectations of 12.5% and slowing sharply from 5.3% in the previous month.
Normally a widening trade surplus is considered a good thing, but April’s result appeared more related to a weakness in imports, fuelling concerns over a slowdown in the world’s second largest economy.
A deeper slowdown in China, the world’s second-biggest economy, would impair a global expansion that is already faltering because of Europe’s austerity measures.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for June delivery added 0.15% to trade at 113.38 a barrel, with the spread between the Brent and crude contracts standing at USD15.97.
On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD97.41 a barrel during U.S. morning trade, climbing 0.6%.
It earlier rose by as much as 0.75% to trade at a session high of USD97.69 a barrel, which was the highest since May 8. Prices touched USD95.17 a barrel on Wednesday, the lowest since December 20, 2011.
Oil prices moved to the highest levels of the session after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 1,000 to 367,000, defying expectations for an increase of 1,000 to 369,000.
Jobless claims have remained below 400,000, a level historically associated with an improving labor market, in 26 of the past 28 weeks.
A separate report showed that the U.S. trade deficit widened more-than-expected in March, as exports increased 2.9% and imports grew 5.2%,
The U.S. trade deficit widened to USD51.8 billion in March from a revised deficit of USD45.4 billion in February, above expectations for a deficit of USD50.0 billion.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Meanwhile, the Organization of Petroleum Exporting Countries, or OPEC, on Thursday said it expects world oil demand to grow by 900,000 barrels a day in 2012, up slightly from 860,000 barrels in its April forecast.
In its monthly oil report for May, OPEC said the stabilization of the U.S. economy and shutdown of Japanese nuclear power plants has stopped the declining trend in demand at least for the short term.
Market sentiment also improved slightly as Greek Socialist leader Evangelos Venizelos was to make a last attempt to form a government on Thursday.
Venizelos, who was the country’s former finance minister, said he would approach all political party leaders and try to get New Democracy, Syriza and Democratic Left to form a pro-European national unity government.
Prices were under pressure during Asian trading hours following the release of data showing Chinese exports and imports grew less-than-expected in April.
In a report, the Customs General Administration of China said the nation’s trade surplus widened to USD18.42 billion in April from USD5.35 in the previous month.
The data showed that exports rose by 4.9% in April from a year earlier, below expectations for growth of 9.1% and slowing from 8.9% in March.
Imports grew by a modest 0.4% in April, significantly below expectations of 12.5% and slowing sharply from 5.3% in the previous month.
Normally a widening trade surplus is considered a good thing, but April’s result appeared more related to a weakness in imports, fuelling concerns over a slowdown in the world’s second largest economy.
A deeper slowdown in China, the world’s second-biggest economy, would impair a global expansion that is already faltering because of Europe’s austerity measures.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for June delivery added 0.15% to trade at 113.38 a barrel, with the spread between the Brent and crude contracts standing at USD15.97.
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