WASHINGTON (dpa-AFX) - After posting losses in the previous two sessions, oil futures recovered and closed higher on Thursday, lifted by likely drop in supply levels due to OPEC+ production cuts and continued attacks by Ukraine on Russian oil facilities.
Recent data showing a smaller than expected increase in U.S. crude inventories, and expectations of increased demand for oil in the U.S. and China contributed as well to the jump in oil prices.
West Texas Intermediate Crude oil futures for May ended higher by $1.82 or about 2.2% at $83.17 a barrel. WTI futures gained about 3.15% this week.
Brent crude futures settled at $87.48 a barrel, gaining $1.39 or 1.61%.
Data from U.S. Energy Information Administration (EIA) on Wednesday showed that commercial crude oil inventories increased by 3.2 million barrels for the week ending March 22 from the previous week, well below API's forecast of a rise of 9.33 million barrels for the week.
The OPEC and its allies are meeting next Wednesday. It is widely expected that the group will decide to maintain its output reduction policies.
Data showing a drop in jobless claims, and a report showing U.S. GDP surged by an upwardly revised 3.4% in the fourth quarter, raised hopes about the outlook for oil demand.
Data from the Labor Department showed initial jobless claims dipped to 210,000 in the week ended March 23rd, a decrease of 2,000 from the previous week's revised level of 212,000. Economists had expected jobless claims to rise to 215,000 from the 210,000 originally reported for the previous week.
Revised data from the Commerce Department showed real gross domestic product surged by 3.4% in the fourth quarter compared to the previously reported 3.2% jump. Economists had expected the pace of GDP growth to be unrevised.
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