Investing.com – Crude oil futures extended gains on Thursday, recouping a portion of the previous day’s sharp drop as risk sentiment recovered after data showed that first-time jobless claims in the U.S. fell to a three-year low and following a well-received Spanish bond auction.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at USD95.58 a barrel during early U.S. morning trade, gaining 0.54%.
It earlier rose by as much as 1.15% to trade at a daily high of USD95.98 a barrel.
The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits last week fell to 366,000, the lowest since May 2008.
Claims have fallen below 400,000, a level historically associated with an improving labor market, in five of the past six weeks.
Oil traders have been paying close attention to readings on U.S. employment levels for signs that people are returning to work, thus driving more and using more energy.
A separate report showed that the New York Federal Reserve’s index of manufacturing conditions jumped to a seven-month high of 9.5 in December, up from a reading of 0.6 the previous month.
A well-received Spanish bond auction also contributed to the improvement in sentiment. The country’s Treasury sold EUR6 billion of medium-and-long-term bonds earlier, far surpassing a target of EUR3.5 billion.
The country sold EUR2.5 billion of five-year bonds at an average yield of 4.02%, down sharply from 5.27% at a similar auction last month. Spain also auctioned EUR1.4 billion of 10-year bonds at a yield of 5.54%, compared to 6.97% last month.
Meanwhile, the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.43% to trade at 80.90. Dollar-denominated oil futures contracts tend to rise when the dollar falls, as this makes oil cheaper for buyers in other currencies.
However, gains were capped amid concerns over the global economic outlook. A preliminary reading of HSBC’s China purchasing managers' index showed manufacturing activity contracted for the second consecutive month in December, adding to concerns over an economic ‘hard landing’.
China is the world’s second largest oil consuming nation and manufacturing numbers are used as indicators for fuel demand growth.
Also Thursday, data showed that manufacturing activity in the euro zone contracted for the fourth consecutive month in December, while manufacturing activity in Germany rebounded from the previous month’s 28-month low, but remained in contraction territory for the third consecutive month.
Crude prices plunged nearly 5% on Wednesday, as lingering concerns over a possible mass downgrade in the euro zone prompted investors to shun riskier assets.
Euro zone developments have been dominated trading in the oil market for the last several months, amid worries that the sovereign debt crisis could trigger a broader economic slowdown that would curb demand for oil.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for January delivery rose 0.7% to trade at USD104.97 a barrel, with the spread between the Brent and crude contracts standing at USD9.39 a barrel.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at USD95.58 a barrel during early U.S. morning trade, gaining 0.54%.
It earlier rose by as much as 1.15% to trade at a daily high of USD95.98 a barrel.
The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits last week fell to 366,000, the lowest since May 2008.
Claims have fallen below 400,000, a level historically associated with an improving labor market, in five of the past six weeks.
Oil traders have been paying close attention to readings on U.S. employment levels for signs that people are returning to work, thus driving more and using more energy.
A separate report showed that the New York Federal Reserve’s index of manufacturing conditions jumped to a seven-month high of 9.5 in December, up from a reading of 0.6 the previous month.
A well-received Spanish bond auction also contributed to the improvement in sentiment. The country’s Treasury sold EUR6 billion of medium-and-long-term bonds earlier, far surpassing a target of EUR3.5 billion.
The country sold EUR2.5 billion of five-year bonds at an average yield of 4.02%, down sharply from 5.27% at a similar auction last month. Spain also auctioned EUR1.4 billion of 10-year bonds at a yield of 5.54%, compared to 6.97% last month.
Meanwhile, the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.43% to trade at 80.90. Dollar-denominated oil futures contracts tend to rise when the dollar falls, as this makes oil cheaper for buyers in other currencies.
However, gains were capped amid concerns over the global economic outlook. A preliminary reading of HSBC’s China purchasing managers' index showed manufacturing activity contracted for the second consecutive month in December, adding to concerns over an economic ‘hard landing’.
China is the world’s second largest oil consuming nation and manufacturing numbers are used as indicators for fuel demand growth.
Also Thursday, data showed that manufacturing activity in the euro zone contracted for the fourth consecutive month in December, while manufacturing activity in Germany rebounded from the previous month’s 28-month low, but remained in contraction territory for the third consecutive month.
Crude prices plunged nearly 5% on Wednesday, as lingering concerns over a possible mass downgrade in the euro zone prompted investors to shun riskier assets.
Euro zone developments have been dominated trading in the oil market for the last several months, amid worries that the sovereign debt crisis could trigger a broader economic slowdown that would curb demand for oil.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for January delivery rose 0.7% to trade at USD104.97 a barrel, with the spread between the Brent and crude contracts standing at USD9.39 a barrel.