Investing.com - Crude oil futures traded higher during U.S. afternoon hours Thursday, following the release of better-than-expected economic data from the U.S.
Prices found additional support as the previous day’s sharp decline to a four-month low created bargain buying opportunities for investors, although concerns over U.S. fiscal policy and the euro zone’s ongoing debt crisis continued to weigh.
On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD84.96 a barrel during U.S. afternoon trade, adding 0.65%.
Starting the oil buying, the U.S. Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell to 355,000 last week, from 363,000 the previous week, compared to expectations for an increase to 370,000.
A separate report showed that the U.S trade deficit narrowed to USD41.5 billion in September from a deficit of USD43.8 billion in August, defying expectations for a deficit of USD45.0 billion.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Prices came off the highest levels of the session after European Central Bank President Mario Draghi maintained a downbeat outlook on the euro zone economy.
Speaking at the ECB’s post-policy meeting press conference, Draghi said that risks to the outlook remain weighted to the downside.
Some bargain buying provided further support, after prices tumbled nearly 5% on Wednesday to the lowest level in four months, as investors fretted over the U.S. “fiscal cliff”, approximately USD600 billion in tax hikes and spending cuts due to come into effect on January 1.
Ratings agency Fitch warned late Wednesday that the U.S.’s triple-A rating would be at risk if Congress and the president did not immediately take action to avoid the crisis.
There are fears that U.S. lawmakers will repeat the same political divisiveness that led Standard & Poor's to downgrade the U.S.’s AAA rating in August 2011.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery declined 0.75% to trade at USD107.58 a barrel, with the spread between the Brent and crude contracts standing at USD22.57 a barrel.
Prices found additional support as the previous day’s sharp decline to a four-month low created bargain buying opportunities for investors, although concerns over U.S. fiscal policy and the euro zone’s ongoing debt crisis continued to weigh.
On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD84.96 a barrel during U.S. afternoon trade, adding 0.65%.
Starting the oil buying, the U.S. Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell to 355,000 last week, from 363,000 the previous week, compared to expectations for an increase to 370,000.
A separate report showed that the U.S trade deficit narrowed to USD41.5 billion in September from a deficit of USD43.8 billion in August, defying expectations for a deficit of USD45.0 billion.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Prices came off the highest levels of the session after European Central Bank President Mario Draghi maintained a downbeat outlook on the euro zone economy.
Speaking at the ECB’s post-policy meeting press conference, Draghi said that risks to the outlook remain weighted to the downside.
Some bargain buying provided further support, after prices tumbled nearly 5% on Wednesday to the lowest level in four months, as investors fretted over the U.S. “fiscal cliff”, approximately USD600 billion in tax hikes and spending cuts due to come into effect on January 1.
Ratings agency Fitch warned late Wednesday that the U.S.’s triple-A rating would be at risk if Congress and the president did not immediately take action to avoid the crisis.
There are fears that U.S. lawmakers will repeat the same political divisiveness that led Standard & Poor's to downgrade the U.S.’s AAA rating in August 2011.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery declined 0.75% to trade at USD107.58 a barrel, with the spread between the Brent and crude contracts standing at USD22.57 a barrel.