U.S. crude oil ended sharply higher Thursday, after the Energy Information Administration's weekly oil report showed a decline in U.S. crude stockpile even as analysts expected an increase. This is despite the dollar strengthening against a some major currencies. Crude prices were also supported by a slew of upbeat macroeconomic data from the U.S., with some positive manufacturing data from China.
The weekly oil report from the Energy Information Administration showed U.S. crude oil inventories to have dipped 2.0 million barrels, while gasoline stocks added 0.90 million barrels in the week ended October 26. Analysts expected crude oil inventories to jump 1.50 million barrels and gasoline stocks to add 200,000 barrels last week.
Economic news from the U.S. showed private sector employment increased in October, while initial jobless claims dropped. Activity in the U.S. manufacturing sector expanded for the second consecutive month in October, with the index unexpectedly showing a modest increase.
Meanwhile, an official survey to gauge China's manufacturing sector performance, indicated the economy to be recuperating after being affected by a plunge in exports following a slowdown in global demand. A private survey, at the same time, showed a marginal deterioration in operating conditions.
Light Sweet Crude Oil futures for December delivery gained $0.85 or 1 percent to close at 87.09 a barrel on the New York Mercantile Exchange Thursday.
Crude prices scaled a high of $87.42 a barrel intraday and a low of $85.92.
Yesterday, oil settled higher as the dollar weakened after fluctuating for much of the day, even as investors weighed the impact of Super storm Sandy on oil supplies and demand.
The euro traded lower against the dollar at $1.2937 on Thursday, as compared to $1.2960 late Wednesday in North America. The euro scaled a high of $1.3982 intraday and a low of $1.2926.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.06 on Thursday, up from 79.96 in North American trade late Wednesday. The dollar scaled a high of 80.11 intraday and a low of 79.86.
In economic news from the U.S., Automatic Data Processing, Inc. said private sector employment increased by 158,000 jobs in October compared to economist estimates for an increase of about 135,000 jobs.
Meanwhile, a report from the Labor Department revealed initial jobless claims dr4opped to 363,000, a decrease of 9,000 from the previous week's revised figure of 372,000. The drop surprised economists, who had expected jobless claims to come in unchanged compared to the 369,000 originally reported for the previous week.
The Institute for Supply Management purchasing managers index edged up to 51.7 in October from 51.5 in September, with a reading above 50 indicating an increase in manufacturing activity. Economists expected the index to come in unchanged. With the modest monthly increase, the index of activity in the manufacturing sector rose to its highest level since coming in at 53.5 in May.
A report from the Conference Board on Thursday showed continued improvement in consumer confidence in the month of October. The consumer confidence index climbed to 72.2 in October from a downwardly revised 68.4 in September. Economists expected the index to rise to 74.0 from the 70.3 originally reported for the previous month.
A Labor Department report showed a notable increase in U.S. labor productivity in the third quarter, with productivity increasing by 1.9 percent, matching the revised increase seen in the second quarter. Economists expected productivity to increase by about 2.0 percent, compared to the 2.2 percent growth reported in the previous quarter.
From China, the purchasing managers' index -- an indicator of the country's factory activity -- rose to 50.2 in October from 49.8 in September, a survey by the China Federation of Logistics and Purchasing on behalf of the National Bureau of Statistics revealed. A PMI reading above 50 indicates expansion of the sector, while a reading below 50 suggests contraction. The PMI was in line with economists' expectations and scored above 50 for the first time in three months.
Meanwhile, another survey by Markit Economics and HSBC revealed that the PMI for the manufacturing sector in China rose to an eight-month high of 49.5 in October from 47.9 in the previous month, suggesting a decline in activity. The preliminary survey data showed a reading of 49.1.
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Market Analysis
December 12, 2025 15:14 ET Central bank decisions dominated the economic news flow this week led by the Federal Reserve. Trade data from the U.S. also gained attention. The Canadian and Swiss central banks also announced their interest rate decisions. Inflation data from China was in focus as the country released the latest consumer price and producer price data.