Crude Oil Ends A Tad Lower

(RTTNews) - U.S. crude oil ended a tad lower Thursday, on some disappointing economic data from the U.S. with retail sales dropping in January and initial claims for unemployment benefits increasing more than expected, notwithstanding a weak dollar. Investors also mulled over the supply scenario after an official government report showed crude oil inventories to have risen more than expected .

In some soft economic news, U.S. retail sales in January dropped unexpectedly with auto sales showing another notable decrease, a Commerce Department report indicated Thursday. Meanwhile, business inventories in the U.S. rose slightly more than expected in December, according to a Commerce Department report on Thursday.

On Wednesday, both the U.S. Energy Information Administration and OPEC raised their expectations for oil demand growth this year.

Light Sweet Crude Oil futures for March delivery, the most actively traded contract, edged down $0.02 or to close at $100.35 a barrel on the New York Mercantile Exchange Thursday.

Crude prices for March delivery scaled a high of $100.66 a barrel intraday and a low of $99.40.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.33 on Thursday, down from its previous close of 80.70 late Wednesday in North American trade. The dollar scaled a high of 80.71 intraday and a low of 80.19.

The euro traded higher against the dollar at $1.3673 on Thursday, as compared to its previous close of $1.3594 late Wednesday in North America. The euro scaled a high of $1.3691 intraday and a low of $1.3586.

In economic news, U.S. retail sales in January 0.4 percent following a revised 0.1 percent decrease in December. Economists expected sales to come in unchanged compared to the 0.2 percent increase originally reported for the previous month. The unexpected drop in retail sales largely reflects a 2.1 percent decrease in sales by motor vehicle and parts dealers, which fell by 1.8 percent in December.

Business inventories in the U.S. rose 0.5 percent in December following a 0.4 percent increase in November. Economists expected inventories to rise by another 0.4 percent.

A report from the Labor Department on Thursday showed first-time claims for U.S. unemployment benefits unexpectedly showed a modest increase in the week ended February 8th. Initial jobless claims rose to 339,000, an increase of 8,000 from the previous week's unrevised figure of 331,000. Economists expected initial jobless claims to edge down to 330,000.