Forexpros – Crude oil futures trimmed losses on Thursday, re-approaching a five-week high after a string of stronger-than-expected U.S. data eased concerns over the health of the U.S. economy, while traders continued to eye developments surrounding Greece and a disruption to Iranian oil exports.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at USD102.02 a barrel during U.S. morning trade, easing down 0.12%.
It earlier fell by as much 1.35% to trade at a session low USD101.19 a barrel.
Market sentiment firmed up after official data showed that U.S. initial jobless claims unexpectedly fell to their lowest level since March 2008 last week, declining to 348,000, confounding expectations for an increase to 364,000.
Jobless claims have remained below 400,000, a level historically associated with an improving labor market, in 14 of the past 16 weeks.
Oil traders have been paying close attention to readings on U.S. employment levels for signs that people are returning to work, thus driving more and using more energy.
A separate report showed that the number of building permits issued in the U.S. in January rose 0.7% to a seasonally adjusted 0.68 million, broadly in line with market expectations.
Another report showed that core producer price inflation rose more-than-expected in January, rising by 0.4%, while PPI rose by 0.1% in January, below expectations for a 0.3% gain.
Also Thursday, the Federal Reserve Bank of Philadelphia said that its manufacturing index improved by 2.9 points to 10.2 in February, a four-month high.
The U.S. is the world’s largest oil consuming nation and manufacturing numbers are used as indicators for fuel demand growth.
But concerns over a delay on a second bailout for Greece persisted after a teleconference of euro zone finance ministers on Wednesday failed to reach a decision about the issue.
European Union officials are believed to be looking at delaying all or part of Greece’s bailout until after a general election in the country, which is expected to take place in April.
Meanwhile, oil traders continued to focus on developments surrounding a potential disruption to Iranian oil exports.
On Wednesday, crude prices spiked to a five-week high of USD102.88 a barrel after Iranian media outlets reported that the country stopped exporting oil to six euro zone countries in retaliation to European Union sanctions last month.
However, prices retraced those gains after Iran’s Oil Ministry denied the state media reports.
Iran has since replied to a letter sent in October by EU policy chief Catherine Ashton offering to re-open talks on the Islamic Republic’s nuclear program, the Wall Street Journal reported Thursday.
Iran is the world’s third largest oil exporter, after Saudi Arabian and Russia. The threat of a major supply disruption from the country has helped support oil prices in recent weeks.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for April delivery rose 0.63% to trade close to a six-month high of USD119.67 a barrel, with the spread between the Brent and crude contracts standing at USD17.65.
Brent prices were boosted by fresh supply worries from South Sudan, after Sudan seized another 2.4 million barrels of crude over a continued dispute on payment issues.
South Sudan seceded from Sudan in July under a 2005 peace deal that ended decades of civil war, but the two countries have remained at odds over issues including oil, debt and fighting along the poorly drawn border.
Oil output was also halted from Yemen’s Masila oilfield, the country’s largest, after workers went on strike over pay issues.
Forexpros
