🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Crude drops on U.S. jobless claims data, Draghi comments

Published 04/04/2013, 01:42 PM
Updated 04/04/2013, 01:43 PM
TTEF
-
LCO
-
CL
-
NWSA
-
Investing.com - Oil prices dropped in U.S. trading on Thursday after official data revealed that more Americans filed for initial jobless benefits last week than expected.

Dovish comments from European Central Bank President Mario Draghi pushed prices down as well.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded down 2.31% at USD92.27 a barrel on Thursday, off from a session high of USD94.81 and up from an earlier session low of USD92.23.

In the U.S. earlier, the Department of Labor reported earlier that the number of people filing for initial jobless benefits last week rose by 28,000 to 385,000, defying expectations for a decrease of 7,000 to 350,000.

The news sent oil falling on fears that Friday's official March jobs report could disappoint and fan fears that the U.S. economy is still battling headwinds and will demand less fuels and energy than once thought.

Elsewhere, ECB President Mario Draghi said monetary authorities were "ready to act" and trim benchmark interest rates if needed, adding that monetary policy will remain accommodative for as long as is needed.

The ECB left interest rates unchanged at 0.75% this week, though Draghi's comments sparked concerns that more sustained recovery is a long way off in Europe.

Softer-than-expected U.S. inventory figures released Thursday kept prices lower as well.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 2.71 million barrels in the week ended March 29, well above market forecasts for a gain of 2.20 million barrels.

Total U.S. crude oil inventories stood at 388.6 million barrels as of last week, well above the upper limit of the average range for this time of year.

The U.S. government also reported that total motor gasoline inventories decreased by 572,000 barrels, less than expectations for a decline of 852,000 barrels.

Rising oil inventories cemented growing concerns that the U.S. economy is awash in oil, which continued to pressure prices lower.

Elsewhere on the ICE Futures Exchange, Brent oil futures for May delivery were down 1.54% at USD105.47 a barrel, up USD13.20 from its U.S. counterpart.







Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.