Crude Oil Ends Sharply Higher On Data

(RTTNews) - U.S. crude oil ended higher Thursday, after some better-than-expected manufacturing activity data from China improved demand growth outlook for oil, even as investor sentiments were on the up after official data yesterday showed crude inventories in the U.S. to have declined more than expected last week.

Activity in China's manufacturing sector bounced back from contraction territory in August with new orders recovering, a preliminary survey by Markit Economics and HSBC showed. The flash HSBC purchasing managers' index rose to 50.1 in August from a 11-month low of 47.7 in July. Economists expected the index to increase to 48.2.

Light Sweet Crude Oil futures for October delivery, the most actively traded contract, gained $1.18 or 1.1 percent to close at $105.03 a barrel on the New York Mercantile Exchange Thursday.

Crude prices for October delivery scaled a high of $105.11 a barrel intraday and a low of $103.53.

Yesterday, oil lost over 1 percent to drop near a two-week low on concerns over demand growth as Fed tapering could curtail oil demand from emerging markets like India and Indonesia.

Wednesday, the Energy Information Administration said U.S. crude oil inventories dipped 1.40 million barrels and gasoline stocks shed 4.00 million barrels in the week ended August 16. Analysts expected U.S. crude oil inventories to drop 1.3 million barrels last week.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.50 on Thursday, up from 81.38 late Wednesday in North American trade. The dollar scaled a high of 81.72 intraday and a low of 81.38.

The euro traded lower against the dollar at $1.3349 on Thursday, as compared to $1.3356 late Wednesday in North America. The euro scaled a high of $1.3384 intraday and a low of $1.3300.

In economic news from the U.S., the Labor Department said initial jobless claims rose to 336,000, an increase of 13,000 from the previous week's revised figure of 323,000. Economists had expected jobless claims to climb to 329,000 from the 320,000 originally reported for the previous week.

Earlier in the day, a Conference Board report showed its index of leading economic indicators to have risen slightly more than expected in July. The leading economic index increased 0.6 percent in July after coming in unchanged in June. Economists expected the index to increase by about 0.5 percent.

From the eurozone, German private sector activity expanded at the fastest pace in seven months in August, preliminary results of a survey by Markit Economics revealed. The composite output index, an indicator that measures the combined activity of manufacturing and service sectors, rose to a seven-month high of 53.4 in August from 52.1 in July.

Eurozone private sector business activity expanded at the sharpest pace in more than two years in August, preliminary results of a survey by Markit Economics revealed. The headline composite output index, a gauge of business activity in both manufacturing and services, rose to a 26-month high of 51.7 in August from 50.5 in July. Economists had forecast the score to rise to 50.9.