Crude Oil Ends Higher On Upbeat Data

(RTTNews) - U.S. crude oil ended higher on Thursday, supported by a slew of positive economic data from the U.S. and on the bullish supply data yesterday. Economic data out of the U.S. showed initial claims for unemployment benefits declined more than expected with existing home sales also rising beyond expectations.

Nevertheless, some sluggish manufacturing activity data from China checked oil's uptick, with concerns over a global slowdown.

Manufacturing activity in China dropped to a three-month low in August with the preliminary HSBC China Manufacturing Purchasing Managers Index dipping to 50.3. This compares with July's final reading of 51.7.

A batch of upbeat economic data from the U.S. earlier today showed existing home sales unexpectedly rose to a ten-month high in July, and a Labor Department report indicated jobless claims to have dropped more than expected in the week ended August 16.

Meanwhile, a Conference Board report showed a bigger than expected increase of its index of leading U.S. economic indicators in July, suggesting the economy is gaining traction.

Investors also continued to watch the developments in Ukraine and the Middle East.

Libya is reported to have started oil exports from its largest terminal, after almost a year. Reports say about 600,000 barrels of oil has been shipped to Europe from the Es Sider port.

In Iraq, the U.S. military has reportedly scaled up airstrikes, shrugging off threats from Islamic militants to kill another US reporter held by them. On Wednesday, the militants released a video showing the execution of American journalist James Foley, in retaliation against U.S. airstrikes in Iraq.

Light Sweet Crude Oil futures for October delivery, the most actively traded contract, gained $0.51 or 0.5 percent to close at $93.96 a barrel on the New York Mercantile Exchange Thursday.

Crude prices for October delivery scaled a high of $94.45 a barrel intraday and a low of $92.50.

On Wednesday, crude oil futures for October ended higher after a report from the U.S. Energy Information Administration showed a bigger than expected drop in crude oil stockpiles in the week ended August 15.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 82.16 on Thursday, down from its previous close of 82.24 late Wednesday in North American trade. The dollar scaled a high of 82.36 intraday and a low of 82.10.

The euro ended higher against the dollar at $1.3279 on Thursday, as compared to its previous close of $1.3260 late Wednesday in North American trade. The euro scaled a high of $1.3290 intraday and a low of $1.3243.

In economic news, a report from the U.S. Labor Department showed initial jobless claims to have declined slightly more than expected to 298,000 in the week ended August 16, a drop of 14,000 from the previous week's revised level of 312,000. Economists expected jobless claims to pull back to 300,000 from the 311,000 originally reported for the previous week.

Data from National Association of Realtors showed existing home sales unexpectedly rose to their highest annual rate of the year in July, climbing to a seasonally adjusted 5.15 million, from a downwardly revised 5.03 million in June. Economists had expected existing home sales to drop to a rate of 5.00 million.

Meanwhile, Philadelphia Federal Reserve said its index of regional manufacturing activity unexpectedly reached a new three-year high in August, rising to 28.0, from 23.9 in July.

The Conference Board's leading economic index rose by a bigger than expected 0.9 percent in July, after seeing an increase of 0.6 percent in the preceding month.

In economic news from the eurozone, private sector growth eased more-than-expected in August, with the zone's composite output index falling to 52.8, from a score of 53.8 in July, data from Markit Economics showed. The indicator was expected to fall marginally to 53.4.

Elsewhere in Europe, U.K. retail sales volume grew 0.1 percent in July from a month ago, slower than the revised 0.2 percent increase in June, the Office for National Statistics reported Thursday. Economists had forecast sales to grow 0.4 percent. However, excluding auto fuel, retail sales advanced 0.5 percent, reversing the 0.1 percent fall in June. It was slightly faster than the expected growth of 0.4 percent.