Investing.com - Crude oil futures rallied during U.S. afternoon trade Thursday, after better-than-expected U.S. jobless claims data and following upbeat comments from European Central Bank President Mario Draghi, depressing the greenback.
On the New York Mercantile Exchange, light sweet crude futures for delivery in September traded at USD89.71 a barrel during U.S. afternoon trade, rallying 0.81%.
Earlier in the day, prices rose by as much as 1.6% to trade at a four-day high of USD90.47 a barrel.
Sentiment found support after ECB President Draghi said earlier that the bank will do whatever is necessary to preserve the euro.
In a speech in London, Draghi appeared to indicate that the ECB would be prepared to intervene to lower Spanish and Italian bond yields, saying that government borrowing costs would fall within the central bank’s mandate if they interfered with the 'transmission' of monetary policy.
The yield on Spanish 10-year bonds dropped back to 6.99% from a session high of 7.38% following the remarks, while the yield on Italian 10-year bonds pulled back to 6.06%.
The euro surged more than 1% against the U.S. dollar, while the dollar index, which tracks the performance of the greenback against a basket of six other major currencies fell 1% to trade at 82.83, the lowest since July 5.
Dollar-denominated oil futures contracts tend to rise when the dollar falls, as this makes oil cheaper for buyers in other currencies.
The greenback was also hit by renewed speculation over the possibility of more easing from the Federal Reserve, ahead of its policy meeting next week.
Meanwhile, the U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits fell by 35,000 to a seasonally adjusted 353,000 last week, beating expectations for a decline of 8,000 to 380,000.
Separate data showed that U.S. core durable goods orders, which exclude transportation items, fell unexpectedly in June, declining 1.1% after a 0.8% rise the previous month. Analysts had expected core durable goods orders to rise 0.1% the previous month.
The report also showed that durable goods orders rose 1.6%, beating expectations for a 0.4% increase and following a 1.6% rise in May.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for September delivery rose 1.1% to trade at USD105.53 a barrel, with the spread between the Brent and crude contracts standing at USD15.57.
On the New York Mercantile Exchange, light sweet crude futures for delivery in September traded at USD89.71 a barrel during U.S. afternoon trade, rallying 0.81%.
Earlier in the day, prices rose by as much as 1.6% to trade at a four-day high of USD90.47 a barrel.
Sentiment found support after ECB President Draghi said earlier that the bank will do whatever is necessary to preserve the euro.
In a speech in London, Draghi appeared to indicate that the ECB would be prepared to intervene to lower Spanish and Italian bond yields, saying that government borrowing costs would fall within the central bank’s mandate if they interfered with the 'transmission' of monetary policy.
The yield on Spanish 10-year bonds dropped back to 6.99% from a session high of 7.38% following the remarks, while the yield on Italian 10-year bonds pulled back to 6.06%.
The euro surged more than 1% against the U.S. dollar, while the dollar index, which tracks the performance of the greenback against a basket of six other major currencies fell 1% to trade at 82.83, the lowest since July 5.
Dollar-denominated oil futures contracts tend to rise when the dollar falls, as this makes oil cheaper for buyers in other currencies.
The greenback was also hit by renewed speculation over the possibility of more easing from the Federal Reserve, ahead of its policy meeting next week.
Meanwhile, the U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits fell by 35,000 to a seasonally adjusted 353,000 last week, beating expectations for a decline of 8,000 to 380,000.
Separate data showed that U.S. core durable goods orders, which exclude transportation items, fell unexpectedly in June, declining 1.1% after a 0.8% rise the previous month. Analysts had expected core durable goods orders to rise 0.1% the previous month.
The report also showed that durable goods orders rose 1.6%, beating expectations for a 0.4% increase and following a 1.6% rise in May.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for September delivery rose 1.1% to trade at USD105.53 a barrel, with the spread between the Brent and crude contracts standing at USD15.57.