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Forexpros – Crude oil futures moved higher in Asian trade Thursday, after reports showing an unexpected decline in U.S. stockpiles, along with upbeat labor data representing a potential spike in demand from the world’s largest energy consumer.
On the New York Mercantile Exchange light, sweet crude futures for November delivery traded at USD78.06 a barrel during early Asian trade, adding 0.49%, after hitting a daily low of USD75.67.
In its weekly report, the U.S. Energy Information Administration reported that U.S. crude oil inventories fell by 4.7 million barrels for the week ending September 30, following a 1.9 million barrel increase the previous week.
Market expectations were for U.S. crude supplies to increase by 1.5 million barrels for the most recent week reporting.
Separately Wednesday, U.S. Institute of Supply Management reported that its non-manufacturing purchasing manager’s index slipped by 0.3 points to 53 in September, down slightly from 53.3 in August, and broadly in line with market expectations.
On the ISM’s index, any number above 50 indicates expansion while a figure below 50 is a sign of contraction.
Meanwhile, payroll processing firm ADP said that the U.S. economy added 91,000 non-farm jobs in September, a slight gain from a revised 89,000 the previous month, and above market expectations of a 70,000 increase.
The ADP report also noted that employment in the service sector gained 90,000 in September, the 21st consecutive month of gains.
The encouraging labor numbers lifted Wall Street shares for a second day; The Dow Jones Industrial Average added 1.21% to 10,940, the Nasdaq Composite Index rose 2.32% to 2,460.51, and the S&P 500 was lifted 1.79% to end the day at 1,144.03.
A falling U.S. dollar helped to support oil futures, as dollar-denominated futures contracts tend to rise when the dollar falls.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.02% to 79.42.
On the ICE Futures Exchange Brent oil futures for November delivery lost 0.08% to trade at USD102.67.
The U.S. Department of Labor was due to release its weekly initial and continuing jobless claims data later Thursday.
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