WASHINGTON (dpa-AFX) - Crude oil futures surged on Thursday, as a better-than-expected jobs survey and boosted optimism that the economic recovery in the top oil consumer is regaining momentum.
Crude for August delivery gained $2.02 to $98.67 a barrel on the New York Mercantile Exchange.
Oil prices found support after a report showed that US private employers added far more jobs than expected in June. According to a report released by payroll processor Automatic Data Processing, Inc. (ADP) private sector employment increased by 157,000 jobs in June following a downwardly revised increase of 36,000 jobs in May.
Economists had expected employment to increase by about 60,000 jobs compared to the addition of 38,000 jobs originally reported for the previous month.
The Labor Department, meanwhile, said new claims for unemployment benefits fell last week for the first time in three weeks by 14,000 to a seasonally adjusted 418,000. Economists expected a drop of 3,000.
Still, oil settled below session highs after the U.S. government said oil inventories fell less than expected last week. The Department of Energy said oil inventories fell 900,000 barrels, less than the 2.4-million-barrel decline expected by analysts. The DOE said gasoline inventories last week fell 600,000 barrels Analysts expected gasoline to climb by 900,000 barrels.
The market will now be focused on Friday's official jobs data for evidence that employment levels are improving, implying stronger demand for oil and refined fuels from the worlds largest consumer.
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