WASHINGTON (dpa-AFX) - U.S. crude oil rebounded to settle sharply higher Thursday, mostly on bargain buying, with the dollar weakening against a basket of major currencies. Investors largely ignored a batch of weak macroeconomic data out of the U.S. which otherwise would have raised demand growth concerns.
Among macroeconomic data released today, were some weak U.S. data on initial jobless claims, the Philly Fed Index registering an unexpectedly slower growth, and an unexpected drop in the Conference Board's leading economic index.
Light Sweet Crude Oil futures for May delivery, the most actively traded contract, jumped $1.05 or 1.2 percent to close at $87.73 a barrel on the New York Mercantile Exchange Thursday.
Crude prices for May delivery scaled a high of $88.31 a barrel intraday and a low of $85.61.
Yesterday, oil tumbled to end lower, with a strong dollar and a declining euro. Oil prices were impacted after an Energy Information Administration weekly oil report showed a more than expected increase in distillate inventories last week, notwithstanding an unexpected drop in U.S. crude oil stockpiles.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 82.44 on Thursday, down from 82.63 late Wednesday in North American trade. The dollar scaled a high of 82.66 intraday and a low of 82.35.
The euro traded higher against the dollar at $1.3074 on Thursday, as compared to $1.3031 late Wednesday in North America. The euro scaled a high of $1.3096 intraday and a low of $1.3022.
In economic news from the U.S., the Labor Department said that initial jobless claims edged up to 352,000, an increase of 4,000 from the previous week's revised figure of 348,000. Economists had expected jobless claims to inch up to 347,000 from the 346,000 originally reported for the previous week.
The Federal Reserve Bank of Philadelphia on Thursday said the index of regional manufacturing activity unexpectedly showed a modest decline. The Philly Fed said its diffusion index of current activity edged down to 1.3 in April from 2.0 in March, although a positive reading indicates continued growth in regional manufacturing activity. Economists expected the index to inch up to 3.3.
After reporting three consecutive monthly increases, the Conference Board's index of leading U.S. economic indicators showed an unexpected drop Thursday. The Conference Board's leading economic index edged down by 0.1 percent in March following a 0.5 percent increase in February. Economists expected the index to increase by 0.3 percent.
From Europe, U.K. retail sales declined more than expected in March due to a fall in non-food store sales, data from the Office for National Statistics revealed. Retail sales volume including auto fuel slipped 0.7 percent month-on-month, partially offsetting last month's 2.1 percent rise. Economists had forecast a 0.6 percent fall for March.
Meanwhile, Moody's Investors Service retained Germany's top-notch sovereign rating in an annual update published on Thursday, citing its highly competitive economy and high levels of investor confidence.
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