Crude Oil Soars To End Above $95 On Upbeat Data

(RTTNews) - U.S. crude oil surged to end at a near one-month high Thursday, on perceived improved demand growth prospects after some upbeat, better than expected initial jobless claims data out of the U.S., even as apprehension over the upcoming talks with Iran later this week persisted. Investors also weighed the Energy Information Administration's weekly oil report which showed a less than expected rise in U.S. crude stockpiles, with hints the Federal Reserve may cut down the pace of its monthly bond-buying program sooner than later.

In some positive economic news from the U.S., first-time claims for unemployment benefits fell more than expected in the week ended November 16, with claims falling to their lowest level in over a month, a Labor Department report showed Thursday. Meanwhile, producer prices in the U.S. decreased modestly in October due largely to a steep decline in energy prices, the Labor Department said.

On the negative side, a Federal Reserve Bank of Philadelphia report on Thursday showed the Philadelphia-area manufacturing activity to have slowed much more than anticipated in November, with the index of activity in the sector falling to a six-month low.

An index measuring manufacturing activity in China came in with a score of 50.4 in November, flash survey results from HSBC and Markit Economics revealed. This was well shy of forecast of 50.8 and down from 50.9 in October.

Light Sweet Crude Oil futures for January delivery, the most actively traded contract, soared $1.59 or 1.7 percent to close at $95.44 a barrel on the New York Mercantile Exchange Thursday.

Crude prices for January delivery scaled a high of $95.63 a barrel intraday and a low of $93.47.

Yesterday, oil settled marginally lower after the official Energy Information Administration's weekly oil report showed U.S. crude stockpiles to have increased last week, albeit less than what analysts expected. Investors also weighed the U.S. Federal Reserve move to continue its quantitative easing program, although indications that members favored slowing down the pace of buying soon.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.09 on Thursday, up from 81.06 late Wednesday in North American trade. The dollar scaled a high of 81.29 intraday and a low of 80.95.

The euro traded higher against the dollar at $1.3461 on Thursday, as compared to its previous close of $1.3440 late Wednesday in North America. The euro scaled a high of $1.3527 intraday and a low of $1.3400.

In economic news from the U.S., the Labor Department said initial jobless claims dropped to 323,000, a decrease of 21,000 from the previous week's revised figure of 344,000. Economists had been expecting initial jobless claims to dip to 335,000 from the 339,000 originally reported for the previous week

In a separate report the U.S. Labor Department said its producer price index dipped by 0.2 percent in October after edging down by 0.1 percent in September. This was in line with economists estimates. Core producer prices, which exclude food and energy, rose by 0.2 percent in October after inching up by 0.1 percent in the previous month. Core prices had been expected to tick up by 0.1 percent.

Growth in Philadelphia-area manufacturing activity slowed much more than anticipated in November, a Federal Reserve Bank of Philadelphia report said Thursday, with the index of activity in the sector falling to a six-month low.

The Philly Fed's diffusion index of current activity tumbled to 6.5 in November from 19.8 in October, with a positive reading indicating continued growth in regional manufacturing activity. Economists expected a much more modest decrease to a reading of 15.5. The Philly Fed index is at its lowest level since hitting a negative 5.2 in May.

From the eurozone, German private sector business activity rose at the fastest pace in ten months in November, flash results of a survey by Markit Economics revealed. The composite output index that measures business activity across both manufacturing and service sectors, rose to a ten-month high of 54.3 in November from 53.2 in October. The manufacturing purchasing managers' index, a measure of the country's factory sector performance, increased to a 29-month high of 52.5 in November from 51.7 in October. Economists had forecast an increase to 52.

Meanwhile, growth of eurozone private sector business activity moderated for a second month running in November, flash results of a survey by Markit Economics revealed The composite output index, that measures business activity across both manufacturing and service sectors, fell to a three-month low of 51.5 in November from 51.9 in October. Economists had forecast an increase to 52.