Investing.com - Crude oil futures dropped over 1% on Friday, as markets eyed upcoming U.S. economic reports after disappointing retail sales data on Thursday dampened optimism over the strength of the U.S. economy.
On the New York Mercantile Exchange, U.S. crude oil for delivery in April traded $0.61 or 1.31% lower to $46.44 a barrel during European early afternoon trade, the lowest level since January 30.
Prices plunged $1.12 or 2.33% on Thursday to settle at $47.05.
Futures were likely to find support at $45.07, the low from January 30 and resistance at $48.76, Thursday's high.
Oil futures weakened after the U.S. Commerce Department reported on Thursday that retail sales fell 0.6% in February, the third consecutive monthly decline. Economists had forecast in increase of 0.3%.
The weak data prompted investors to push back expectations for a rate hike in the U.S.
At the same time the Labor Department reported that the number people filing new claims for unemployment benefits fell by 36,000 to 289,000 last week, indicating that the recovery in the labor market is continuing to strengthen.
Traders now awaited the release of data on producer prices and consumer sentiment due later Friday, for further indications on the strength the U.S. economy.
Oil prices have fallen sharply in recent months as OPEC resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for April delivery retreated $0.52, or 0.91%, to hit $56.53 a barrel, with the spread between the Brent and the WTI crude contracts stranding at $10.09.