Investing.com - Crude oil futures traded higher Thursday, bouncing from the previous session’s seven-month low as traders focused on potential Iranian supply disruptions
On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded at USD91.14 a barrel during U.S. trade, adding 1.40%.
Prices touched USD89.28 a barrel on Wednesday, the lowest since November 1.
Crude’s gains came after reports surfaced that Iran has rejected proposals by six world powers, which include the U.S., the U.K., France, China, Russia and Germany, to curb its nuclear program.
The Islamic Republic accused the West of creating a "difficult atmosphere" with its demands at talks in Baghdad earlier in the day. Despite the dead end, negotiations are expected to continue in Geneva in mid-June, according to the Iranian news agency Mehr.
Oil traders ignored a report from the Commerce Department saying that U.S. core durable goods orders fell by a seasonally adjusted 0.6% in April, defying expectations for a 0.9% gain and dropping for the second consecutive month.
Total durable goods orders, which include transportation items, inched by a seasonally adjusted 0.2% in April, below expectations for a 0.5% gain.
A separate report from the U.S. Department of Labor showed the number of people who filed for unemployment assistance in the U.S. last week fell by 2,000 to a seasonally adjusted 370,000, in line with expectations.
Jobless claims have remained below 400,000, a level historically associated with an improving labor market, in 28 of the past 30 weeks, though lately claims have been pushing higher from the 350,000 associated with above-average job growth.
Meanwhile, in the euro zone, industry data showed that manufacturing activity in the euro zone contracted at the fastest pace since June 2009 in May. Its preliminary manufacturing purchasing managers’ index fell by 0.9 points to a seasonally adjusted 45.0 in May from a final reading of 45.9 in April.
The news came after Markit reported that its German manufacturing purchasing managers’ index declined to a seasonally adjusted 45.0 in May from a final reading of 46.2 the previous month.
Reduced levels of output, new orders and employment meant that the headline German manufacturing PMI fell to its lowest since June 2009.
A separate report showed that manufacturing activity in France contracted at the sharpest rate since April 2009 in May, while service sector activity contracted at the same pace from last month
The data came after a report showing that Chinese manufacturing activity remained in contraction territory for the seventh consecutive month in May, fuelling concerns over a deeper-than-expected slowdown in the world’s second largest economy.
Oil traders often use manufacturing numbers as indicators for future fuel demand growth.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
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 July delivery rose 0.75% to trade at 106.36 a barrel, with the spread between the Brent and crude contracts standing at USD15.52.
On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded at USD91.14 a barrel during U.S. trade, adding 1.40%.
Prices touched USD89.28 a barrel on Wednesday, the lowest since November 1.
Crude’s gains came after reports surfaced that Iran has rejected proposals by six world powers, which include the U.S., the U.K., France, China, Russia and Germany, to curb its nuclear program.
The Islamic Republic accused the West of creating a "difficult atmosphere" with its demands at talks in Baghdad earlier in the day. Despite the dead end, negotiations are expected to continue in Geneva in mid-June, according to the Iranian news agency Mehr.
Oil traders ignored a report from the Commerce Department saying that U.S. core durable goods orders fell by a seasonally adjusted 0.6% in April, defying expectations for a 0.9% gain and dropping for the second consecutive month.
Total durable goods orders, which include transportation items, inched by a seasonally adjusted 0.2% in April, below expectations for a 0.5% gain.
A separate report from the U.S. Department of Labor showed the number of people who filed for unemployment assistance in the U.S. last week fell by 2,000 to a seasonally adjusted 370,000, in line with expectations.
Jobless claims have remained below 400,000, a level historically associated with an improving labor market, in 28 of the past 30 weeks, though lately claims have been pushing higher from the 350,000 associated with above-average job growth.
Meanwhile, in the euro zone, industry data showed that manufacturing activity in the euro zone contracted at the fastest pace since June 2009 in May. Its preliminary manufacturing purchasing managers’ index fell by 0.9 points to a seasonally adjusted 45.0 in May from a final reading of 45.9 in April.
The news came after Markit reported that its German manufacturing purchasing managers’ index declined to a seasonally adjusted 45.0 in May from a final reading of 46.2 the previous month.
Reduced levels of output, new orders and employment meant that the headline German manufacturing PMI fell to its lowest since June 2009.
A separate report showed that manufacturing activity in France contracted at the sharpest rate since April 2009 in May, while service sector activity contracted at the same pace from last month
The data came after a report showing that Chinese manufacturing activity remained in contraction territory for the seventh consecutive month in May, fuelling concerns over a deeper-than-expected slowdown in the world’s second largest economy.
Oil traders often use manufacturing numbers as indicators for future fuel demand growth.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
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 July delivery rose 0.75% to trade at 106.36 a barrel, with the spread between the Brent and crude contracts standing at USD15.52.