U.S. crude oil ended higher for a second straight session Thursday, on some better than expected weekly initial jobless claims and retail sales data out of the U.S. Nevertheless, investors continued to mull over the official Energy Information Administration weekly oil report yesterday, which indicated a more-than-anticipated jump in U.S. crude oil stockpiles last week.
There were also renewed demand growth concerns after the World Bank lowered its global economic growth outlook, due mainly to the deeper-than-expected recession in the eurozone and muted growth in developing countries.
Light Sweet Crude Oil futures for July delivery, the most actively traded contract, gained $0.81 or 0.8 percent to close at $96.69 a barrel on the New York Mercantile Exchange Thursday.
Crude prices for July delivery scaled a high of $96.92 a barrel intraday and a low of $95.02.
Yesterday, oil settled higher notwithstanding an official Energy Information Administration weekly oil report that showed a sharp, more than expected jump in U.S. crude oil stockpiles last week.
The EIA said U.S. crude oil inventories moved up 2.5 million barrels and gasoline stocks gained 2.7 million barrels in the weekended June 07. Analysts expected no change to crude oil inventories, while gasoline stocks were expected to rise by 1 million. Meanwhile, the IEA maintained oil demand projection at 90.6 mbd for 2013, despite projecting higher through-puts in the third quarter 2013.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.79 on Thursday, down from 80.94 late Wednesday in North American trade. The dollar scaled a high of 80.99 intraday and a low of 80.50.
The euro traded higher against the dollar at $1.3344 on Thursday, as compared to $1.3337 late Wednesday in North America. The euro scaled a high of $1.3390 intraday and a low of $1.3280.
In economic news, the U.S. Labor Department said initial jobless claims fell to 334,000, a decrease of 12,000 from the previous week's unrevised figure of 346,000. The modest decrease came as a surprise to economists, who had been expecting initial jobless claims to edge up to 350,000.
Simultaneously, the U.S. Commerce Department said retail sales increased by 0.6 percent in May after edging up by 0.1 percent in April. The sales growth came in just above economist estimates for a 0.5 percent increase. Excluding a 1.8 percent jump in sales by motor vehicle and parts dealers, retail sales increased by a more modest 0.3 percent in May compared to expectations for 0.4 percent growth.
Business inventories in the U.S. rose in line with economist estimates in April, a Commerce Department report showed Thursday. Business inventories increased by 0.3 percent in April compared to a revised 0.1 percent decrease in March. The modest rebound were in line with economists expectations. Retail inventories rose by 0.4 percent, while inventories at both manufacturers and merchant wholesalers edged up by 0.2 percent.
From the euro zone, Germany's wholesale prices declined for the second consecutive month in May on lower cost of gaseous fuels, Destatis reported. Wholesale prices dropped unexpectedly by 0.1 percent from a year ago, after easing 0.4 percent in April. Economists had forecast a 0.2 percent rise for May.
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