Crude oil off 1-week low after U.S. jobless claims, ECB rate cut

Investing.com - Crude oil futures bounced off a one-week low on Thursday, after data showed that the number of people who filed for unemployment assistance in the U.S. fell to a five-year low last week.

On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD91.76 a barrel during U.S. morning trade, up 0.8% on the day.

New York-traded oil prices rose by as much as 0.9% earlier in the session to hit a daily high of USD91.88 a barrel.

The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the U.S. last week fell by 18,000 to a seasonally adjusted 324,000, the lowest level since January 2008.

Separate reports showed that the U.S. trade deficit narrowed more-than-expected in January, while U.S. non-farm productivity rose less-than-expected in the first quarter.

Market players now looked ahead to Friday’s highly-anticipated U.S. monthly jobs report to further asses the strength of the country’s economy and the need for further stimulus from the Federal Reserve.

The central bank said in a statement Wednesday that it would continue with its USD85 billion monthly bond-buying purchases, but added it may raise or cut the program, subject to economic conditions.

Prices found additional support after the European Central Bank cut its benchmark interest rate by 0.25 basis points to a record-low 0.5%, in a bid to bolster faltering growth in the region.

Meanwhile, in China, data released earlier showed that China’s final HSBC Flash Purchasing Managers Index was revised down to 50.4 in April from a flash reading of 50.5 and down from 51.6 in March.

The disappointing data came one day after a government report showed that China’s manufacturing purchasing managers' index ticked down to 50.6 in April from 50.9 in March.

China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand. Manufacturing numbers are often used as indicators for future fuel demand growth.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for June delivery added 0.6% to trade at USD100.56 a barrel, with the spread between the Brent and crude contracts standing at USD8.80 a barrel.

The gap between the contracts fell to the lowest level since December 2011 earlier in the week, amid an improving production outlook in the North Sea and indications of declining stockpiles at Cushing, Oklahoma, the delivery point for Nymex oil futures.