Investing.com - Crude oil futures fell sharply on Thursday, as a broadly stronger U.S. dollar and ongoing concerns over a glut in U.S. supplies drove down prices.
On the New York Mercantile Exchange, crude oil for delivery in April tumbled $1.07, or 2.1%, to trade at $49.92 a barrel during U.S. morning hours.
The dollar strengthened broadly against a basket of other major currencies as investors digested a raft of U.S. data on initial jobless claims, consumer price inflation and durable goods orders.
The U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending February 21 increased by 31,000 to 313,000 from the previous week’s revised total of 282,000.
Separately, the U.S. Commerce Department said that total durable goods orders increased by 2.8% last month, above expectations for a gain of 1.7%, while core durable goods orders, excluding volatile transportation items, inched up 0.3% in January, disappointing forecasts for a 0.5% gain.
Data also showed that U.S. consumer prices declined 0.7% last month, compared to estimates for a decline of 0.6%, while core consumer prices, which exclude food and energy costs, increased by 0.2% in January, above expectations for a 0.1% increase.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.88% to 95.07.
Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.
Meanwhile, the U.S. Energy Information Administration said in its weekly report Wednesday that U.S. crude oil inventories rose by 8.4 million barrels last week, compared to expectations for an increase of 4.0 million barrels.
Total U.S. crude oil inventories stood at 434.1 million barrels, the most in at least 80 years.
A day earlier, New York-traded oil futures rallied $1.71, or 3.47%, to settle at $50.99 as Saudi Arabia's oil minister calmed markets with reassuring comments on global oil demand.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for April delivery dipped 23 cents, or 0.38%, to trade at $61.40 a barrel.
The April Brent contract surged $2.97, or 5.06%, on Wednesday to end at $61.63 a barrel, the most since February 18.
The spread between the Brent and the WTI crude contracts stood at $11.48 a barrel, compared to $10.64 by close of trade on Wednesday.
Brent prices soared after Saudi Arabian oil minister Ali al-Naimi told reporters on Wednesday that oil markets have settled down after a prolonged period of volatility late last year.
Oil prices have fallen sharply in recent months as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.