U.S. crude oil rebounded to end sharply higher Thursday, on some upbeat economic data from the U.S., amid mounting speculation the OPEC may cut production to keep a check on prices at its meeting in Vienna next week. Nevertheless, some OPEC members have indicated they would rather keep production high and cut prices than reduce output.
Signaling some optimism for the U.S. economy with some encouraging economic news, a Federal Reserve Bank of Philadelphia report showed its manufacturing activity index jumped to its highest level in over twenty years in November, while a Conference Board index of leading U.S. economic indicators rose more than anticipated in October.
Meanwhile, a Labor Department report showed U.S. consumer prices came in unchanged in October, with higher prices for services offsetting a steep drop in energy prices.
Investors have largely ignored some tepid data from China and the eurozone, with a weak reading on Chinese manufacturing activity in November and eurozone private sector growth unexpectedly slowing to a sixteen-month low.
Light Sweet Crude Oil futures for January delivery, the most actively traded contract, jumped $1.35 or 1.8 percent to close at $75.85 a barrel on the New York Mercantile Exchange Wednesday.
Crude prices for January delivery scaled a high of $75.90 a barrel intraday and a low of $74.20.
On Wednesday, crude oil futures ended lower at $74.50 a barrel, down $0.14 or 0.2 percent. after data from the U.S. Energy Information Administration showed crude oil stockpiles to have increased by 2.6 million barrels in the week ended November 14, against a forecast for a decline of 0.8 million barrels. According to Bloomberg data, OPEC pumped 30.97 million barrels a day in October, well above the output target of 30 million barrels a day.
Minutes from the Federal Reserve's October meeting showed members debated how best to communicate their outlook for interest rate hikes.
With unemployment rate having improved to 5.8 percent, better than the 6 percent target, the Federal Open Market Committee's minutes from the October meeting indicate the central bank to be on track to hike rates next year, notwithstanding some low inflation numbers and a weak global economic outlook.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 87.67 on Thursday, down from its previous close of 87.69 late Wednesday in North American trade. The dollar scaled a high of 87.94 intraday and a low of 87.49.
The euro trended lower against the dollar at $1.2544 on Thursday, as compared to its previous close of $1.2554 late Wednesday in North American trade. The euro scaled a high of $1.2575 intraday and a low of $1.2506.
In economic news, first-time claims for U.S. unemployment benefits saw a modest decrease in the week ended November 15, a report from the Labor Department showed Thursday. Initial jobless claims edged down to 291,000, a decrease of 2,000 from the previous week's revised level of 293,000. Economists expected jobless claims to dip to 284,000 from the 290,000 originally reported for the previous week.
A report from the National Association of Realtors on Thursday showed existing home sales in the U.S. to have unexpectedly declined in October. NAR said existing home sales climbed 1.5 percent to a seasonally adjusted annual rate of 5.26 million in October from an upwardly revised 5.18 million in September. Economists expected existing home sales to edge down to 5.15 million from the 5.17 million originally reported for the previous month.
The Conference Board report on Thursday showed its index of leading U.S. economic indicators to have risen more than anticipated in October, indicating continued economic growth through the holiday season and into early 2015. The Conference Board's leading economic index rose by 0.9 percent in October following a 0.7 percent increase in September. Economists expected the index to rise by 0.5 percent.
A Federal Reserve Bank of Philadelphia report on Thursday showed its index of manufacturing activity jumped to its highest level in over twenty years in November, after reporting a modest slowdown in the pace of growth in regional manufacturing activity in the previous month. The Philly Fed's diffusion index for current activity surged to 40.8 in November from 20.7 in October, with a positive reading indicating growth in regional manufacturing activity. Economists expected the index to drop to a reading of 18.0.
With higher prices for services offsetting a steep drop in energy prices, a Labor Department report showed U.S. consumer prices to have come in unchanged in October. The consumer price index was unchanged in October after inching up by 0.1 percent in September. Economists expected consumer prices to edge down by 0.1 percent.
China's manufacturing sector purchasing managers' index fell to its lowest level in six months, preliminary figures from HSBC and Markit Economics revealed on Thursday. The HSBC manufacturing PMI came in at 50.0 in November- shy of expectations for 50.2 and down from 50.4 in October.
Private sector growth in the eurozone slowed unexpectedly to a 16-month low in November, as new orders dropped for the first time since July 2013. Private sector activity in Germany also posted the weakest growth in 16 months, while France continued to contract in November. The eurozone composite output index dropped to 51.4 in November, the lowest score since July of last year, from 52.1 in October, flash estimate from Markit Economics showed Thursday. Economists had forecast an increase to 52.3.
Elsewhere in Europe, U.K. retail sales grew more than expected in October on strong recovery in non-food store sales, data showed Thursday. Retail sales volume including auto fuel advanced 0.8 percent in October from September, the Office for National Statistics said Thursday. Economists expected sales to recover at a slower pace of 0.3 percent after falling 0.4 percent in September.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.