Forexpros – Crude oil futures traded higher Thursday, despite higher than expected U.S. jobless claims, on strong German production numbers and continued Iranian supply disruption fears.
On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at USD106.78 a barrel during early U.S. afternoon trade, gaining 0.59%.
It earlier rose by as much as 0.9% to trade at a two-day high of USD107.16 a barrel.
Oil traded higher despite a report from the U.S. Labor Department indicating that the number of individuals filing for initial jobless benefits last week rose a five-week high of 362,000, missing expectations for a decline to 350,000.
The previous week’s figure was revised up to 354,000 from 351,000.
U.S. jobless claims have increased in the past three weeks, the first time since August 2010.
Meanwhile, oil prices continued to monitor tensions between Iran and the West amid worries over its nuclear program.
Iranian state news agency IRNA stated that the Islamic Republic’s Supreme Leader Ayatollah Ali Khamenei has welcomed comments by U.S. President Obama about the need to dampen the drumbeat of war as a diplomatic “window of opportunity”.
The face-off between Iran and Western countries has dominated sentiment in the oil market for weeks, raising fears that the increased tension over Tehran’s nuclear program could lead to an oil export halt.
On Wednesday, the Associated Press reported that satellite images of Iran’s military complex in Parchin appear to show trucks and earth-moving vehicles, indicating an attempted cleanup of radioactive traces possibly left by tests of a nuclear-weapon trigger.
On Tuesday, Iranian officials said they will allow United Nation nuclear inspectors to visit the previously off-limits military complex in Parchin.
Two people with knowledge of the matter said the crews at the Parchin military site may be trying to erase evidence of tests of a small experimental neutron device used to set off a nuclear explosion.
The IAEA has already identified Parchin as the location of suspected nuclear weapons-related testing
Prices remained supported as prospects for a successful Greek deal increased after a group of major banks and funds said they would cooperate with the swap.
The swap is vital for Greece to cut its debt and secure a bailout of EUR130 billion. Without the aid package, Greece will likely default.
In other news Thursday, the European Central Bank left its benchmark interest rate unchanged at 1% for the third consecutive month in March.
Speaking at the bank’s post policy meeting press conference ECB President Mario Draghi said he expected the euro zone’s economy to recover in the course of the year.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for April delivery was up 1.21% to trade at 125.64 a barrel, with the spread between the Brent and crude contracts standing at USD18.86.
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