Forexpros – Crude oil futures trimmed gains in low-volume trade on Thursday, easing off a six-day high after government data showed that U.S. economic growth was slower than previously estimated in the third quarter, while losses were limited by an unexpected improvement in weekly jobless claims.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at USD99.05 a barrel during early U.S. morning trade, gaining 0.4%.
It earlier rose by as much as 0.73% to trade at USD99.40 a barrel, the highest since December 14.
Trading volumes were expected to remain light ahead of the Christmas holiday weekend, as many traders have closed books before the end of the year, reducing liquidity in the market and increasing the volatility.
Crude prices came off their highs after the U.S. Bureau of Economic Analysis said gross domestic product increased at a seasonally adjusted annual rate of 1.8% during the third quarter, down from a previous estimate of 2.0%.
The data primarily reflects a downward revision to personal consumption, which grew 1.6% compared to a previous estimate of 2.3%. Consumer spending typically accounts for nearly 70% of U.S. economic growth.
However, prices remained supported after a separate report showed that the number of individuals filing for initial jobless benefits last week fell by 4,000 to 364,000, the lowest since April 2008.
Analysts had expected jobless claims to rise by 7,000 to 375,000 last week.
The U.S. is the world’s largest oil consuming nation, accounting for nearly 22% of global oil demand, according to British Petroleum Statistical Review of World Energy.
Meanwhile, prices continued to draw support from a potential disruption to Middle Eastern oil supplies.
A series of at least 14 coordinated bombings hit Baghdad earlier in the day, killing at least 57 people. The bombings come just days after the last U.S. troops left the country, renewing fears over sectarian violence between Sunni and Shia Muslim groups. Iraq pumped nearly 2.57 million barrels of oil per day last month.
Lingering concerns that the West would impose tougher sanctions on Iran over the country’s nuclear program also lent support. Iran is the world’s fourth largest oil producer, pumping nearly 5% of the world’s oil in 2010.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for February delivery eased up 0.2% to trade at USD107.92 a barrel, with the spread between the Brent and crude contracts standing at USD8.87 a barrel.
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