Crude Oil Ends Lower On Demand Growth Concerns

(RTTNews) - U.S. crude oil ended lower for a second straight session on Thursday, on demand growth concerns after the U.S. Federal Reserve's decision to reduce its monthly bond buying program by $10 billion and data from the U.S. Energy Information Administration that showed a notable rise in crude stockpiles last week.

A none too encouraging report on Chinese manufacturing activity in April also weighed on oil prices.

Light Sweet Crude Oil futures for June delivery, the most actively traded contract, dropped $0.32 or 0.3 percent to close at $99.42 a barrel on the New York Mercantile Exchange Thursday.

Crude prices for June delivery scaled a high of $99.89 a barrel intraday and a low of $98.74.

Yesterday, crude oil ended sharply lower after a weekly oil report from the U.S. Energy Information Administration showed sharp increase in oil stockpiles.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.51 on Thursday, up from its previous close of 79.51 late Wednesday in North American trade. The dollar scaled a high of 79.54 intraday and a low of 79.41.

The euro traded higher against the dollar at $1.3869 on Thursday, as compared to its previous close of $1.3867 late Wednesday in North America. The euro scaled a high of $1.3889 intraday and a low of $1.3864.

In economic news from the U.S., the Labor Department's report showed initial jobless claims to have risen by 14,000 to 344,000 in the week ended April 26. Economists expected jobless claims to dip to 320,000.

A report from the Commerce Department showed an unexpected rise in both personal income and spending in March. While personal income rose 0.5 percent in March from an upwardly revised 0.4 percent in February, personal spending surged 0.9 percent in March, following an upwardly revised 0.5 percent a month earlier.

Another report from the U.S. Commerce Department showed U.S. construction spending to have risen less than expected 0.2 percent to an annual rate of $942.5 billion in March, after falling by 0.2 percent to a revised $940.8 billion in February.

Meanwhile, the Institute for Supply Management's report showed a more than expected rise in U.S. manufacturing activity, with the the purchasing managers index climbing to 54.9 in April, from 53.7 in March.

An index monitoring manufacturing activity in China came in with a seasonally adjusted score of 50.4 in April, the China Federation of Logistics and Purchasing said on Thursday. This was just shy of the 50.5 forecast, but up from 50.3 in March.

U.K. factory expansion improved strongly in April, with the seasonally adjusted Markit/Chartered Institute of Purchasing & Supply Purchasing Manager's Index climbing to 57.3 in April from 55.8 in March, which was revised from 55.3.

Investors will be looking ahead to monthly sales statistics from automakers. Economists expect vehicles sales to come in at a seasonally adjusted annual rate of 16.2 million units in April, compared to 16.4 million units in the previous month.