Crude Oil Ends Lower On Mixed Data

(RTTNews) - U.S. crude oil snapped a three-day gain to end lower on Thursday, tracking declining European and U.S. equity markets, after some mixed economic data out of the U.S. Investors also weighed the better than expected crude stockpiles in the U.S., which also contributed to the drop in prices.

In economic news, U.S. consumer prices increased in line with economists' estimates in April, with prices for gasoline, shelter, and food all rising, a Labor Department report showed Thursday. Meanwhile, business conditions for New York manufacturers improved significantly in May with the index of regional manufacturing activity at its highest level in nearly four years, a report from the Federal Reserve Bank of New York said Thursday.

Activity in the Philadelphia-area manufacturing sector expanded for the third consecutive month in May, although the index of activity in the sector fell compared to the previous month.

Light Sweet Crude Oil futures for June delivery, the most actively traded contract, shed $0.87 or 0.9 percent to close at $101.50 a barrel on the New York Mercantile Exchange Thursday.

Crude prices for June delivery scaled a high of $102.26 a barrel intraday and a low of $101.27.

On Wednesday, crude oil futures ended higher for a third successive session, on supply concerns with likely disruptions from Russia and Libya.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.99 on Thursday, down from its previous close of 80.06 late Wednesday in North American trade. The dollar scaled a high of 80.34 intraday and a low of 79.93.

The euro traded higher against the dollar at $1.3717 on Thursday, as compared to its previous close of $1.3715 late Wednesday in North America. The euro scaled a high of $1.3732 intraday and a low of $1.3649.

In economic news from the U.S., the Labor Department said initial jobless claims fell to a seven-year low to 297,000, down 24,000 from the previous week's revised level of 321,000. Economists had been expecting initial jobless claims to decline to 317,000 from 319,000 in the previous week.

Homebuilder confidence in the U.S. unexpectedly deteriorated in May, the National Association of Home Builders said in a report Thursday, with the homebuilder confidence index dropping to its lowest level in a year. The NAHB/Wells Fargo Housing Market Index edged down to 45 in May from a revised 46 in April. Economists expected the index to climb to a reading of 49 from the 47 originally reported for the previous month.

The U.S. Labor Department said its consumer price index rose 0.3 percent in April after edging up by 0.2 percent in March. Economists expected consumer prices to rise by about 0.3 percent. Core consumer prices, which exclude food and energy prices, edged up by 0.2 percent, matching the increase seen in the previous month. Core prices had been expected to tick up by 0.1 percent.

A Federal Reserve Bank of New York report showed business conditions for New York manufacturers improved significantly in May, with the index of regional manufacturing activity reaching its highest level in nearly four years. The New York Fed said its general business conditions index jumped to 19.0 in May from 1.3 in April, with a positive reading indicating growth in regional manufacturing activity. Economists expected the index to climb to a reading of 5.0.

The Federal Reserve's report on U.S. industrial production showed an unexpected 0.6 percent drop in output during April, following an upwardly revised 0.9 percent in March. Economists expected production to come in unchanged compared to the 0.7 percent increase originally reported for the previous month.

According to a report from the Federal Reserve Bank of Philadelphia, activity in the Philadelphia-area manufacturing sector expanded for the third consecutive month in May, although the index of activity in the sector dipped to 15.4, down from 16.6 in April. Economists expected the index to drop to a reading of 14.3.

Meanwhile, Russia's economic growth slowed significantly in the first quarter, as the fallout from the Ukraine crisis hurt the economy as investments left the country. Gross domestic product rose just 0.9 percent year-on-year, following 2 percent increase in the fourth quarter of 2013, figures from the statistical office showed Thursday. Economists expected a weaker growth figure of 0.7 percent. The country's economy ministry had forecast 0.8 percent expansion for the first quarter.