Investing.com - Crude oil futures came under heavy selling pressure during U.S. morning hours on Thursday, as investors digested data showing first time jobless claims in the U.S. rose to the highest since mid-July last week, while manufacturing activity in the Philadelphia-region expanded for the first time in six months.
On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD91.30 a barrel during U.S. morning trade, tumbling 1.4%.
The December contract fell by as much as 1.6% earlier in the session to trade at a daily low of USD91.13 a barrel, the weakest level since October 15.
In a report, the Federal Reserve Bank of Philadelphia said that its manufacturing index improved by 7.6 points to 5.7 in October from September’s reading of minus 1.9.
Analysts had expected the index to improve by 2.9 points to a reading of 1.0 in October.
The report came after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week rose by 46,000 to a seasonally adjusted 388,000, compared to expectations for an increase of 23,000 to 365,000.
The previous week’s figure was revised up to 342,000 from a previously reported 339,000, which was the lowest reading since February 2008.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Markets now looked ahead to the start of a two-day European Union summit later in the day, although no major announcements on Spain or Greece were expected.
Spain saw the yield on 10-year government bonds fall to the lowest level since April at an auction of government debt earlier in the session, as investors bought the country’s debt in the expectations that Madrid is moving closer to a bailout.
Traders have been anticipating for the past month that the Spanish government would ask for a full-scale sovereign bailout.
A bailout would allow the ECB to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation. But Spain has been reluctant to do so because it may come with conditions on its budget.
Prices swung between modest gains and losses during the Asian trading session, as investors digested data showing China’s economy grew at the weakest rate since the first quarter of 2009.
Official data released earlier showed that China's economy grew 7.4% in the third quarter compared to a year earlier, slowing from 7.6% in the previous three months.
It was the weakest GDP reading since the first quarter of 2009 and the seventh straight quarter of slower growth.
The Asian nation is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Market players also continued to focus on escalating tensions between Syria and Turkey and the possibility that Iran could support Syria in such a dispute.
Tensions between Turkey and Syria have been growing since Syrian shells last week killed five people in a Turkish border village.
Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2011.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery dropped 1.3% to trade at USD111.75 a barrel, with the spread between the Brent and crude contracts standing at USD20.45 a barrel.
London-traded Brent prices have been well-supported in recent sessions, as a combination of lingering concerns over a disruption to supplies from the Middle East and worries over declining production in the North Sea-region have been boosting prices.
Despite recent gains, Wall Street investment firm Goldman Sachs cut its oil price forecast for 2013 to USD110 a barrel, compared to a previous estimate of USD130 a barrel.
On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD91.30 a barrel during U.S. morning trade, tumbling 1.4%.
The December contract fell by as much as 1.6% earlier in the session to trade at a daily low of USD91.13 a barrel, the weakest level since October 15.
In a report, the Federal Reserve Bank of Philadelphia said that its manufacturing index improved by 7.6 points to 5.7 in October from September’s reading of minus 1.9.
Analysts had expected the index to improve by 2.9 points to a reading of 1.0 in October.
The report came after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week rose by 46,000 to a seasonally adjusted 388,000, compared to expectations for an increase of 23,000 to 365,000.
The previous week’s figure was revised up to 342,000 from a previously reported 339,000, which was the lowest reading since February 2008.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Markets now looked ahead to the start of a two-day European Union summit later in the day, although no major announcements on Spain or Greece were expected.
Spain saw the yield on 10-year government bonds fall to the lowest level since April at an auction of government debt earlier in the session, as investors bought the country’s debt in the expectations that Madrid is moving closer to a bailout.
Traders have been anticipating for the past month that the Spanish government would ask for a full-scale sovereign bailout.
A bailout would allow the ECB to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation. But Spain has been reluctant to do so because it may come with conditions on its budget.
Prices swung between modest gains and losses during the Asian trading session, as investors digested data showing China’s economy grew at the weakest rate since the first quarter of 2009.
Official data released earlier showed that China's economy grew 7.4% in the third quarter compared to a year earlier, slowing from 7.6% in the previous three months.
It was the weakest GDP reading since the first quarter of 2009 and the seventh straight quarter of slower growth.
The Asian nation is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Market players also continued to focus on escalating tensions between Syria and Turkey and the possibility that Iran could support Syria in such a dispute.
Tensions between Turkey and Syria have been growing since Syrian shells last week killed five people in a Turkish border village.
Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2011.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery dropped 1.3% to trade at USD111.75 a barrel, with the spread between the Brent and crude contracts standing at USD20.45 a barrel.
London-traded Brent prices have been well-supported in recent sessions, as a combination of lingering concerns over a disruption to supplies from the Middle East and worries over declining production in the North Sea-region have been boosting prices.
Despite recent gains, Wall Street investment firm Goldman Sachs cut its oil price forecast for 2013 to USD110 a barrel, compared to a previous estimate of USD130 a barrel.