Investing.com - Crude oil futures rallied over 1% on Friday, as demand for the dollar remained under pressure after Thursday's disappointing U.S. retail sales and jobless claims data.
On the New York Mercantile Exchange, U.S. crude oil for delivery in March traded $0.81 or 1.58% higher to $52.01 a barrel during European early afternoon trade.
Prices surged $2.37 or 4.85% on Thursday to settle at $51.21.
Futures were likely to find support at $49.14, Thursday's low and resistance at $53.99, the high from February 9.
The dollar weakened after the U.S. Commerce Department reported on Thursday that retail sales declined by 0.8% last month, worse than expectations for a drop of 0.5%. Retail sales fell by 0.9% in December.
Core retail sales, which exclude automobile sales, slumped 0.9% in December, disappointing forecasts for a 0.4% decline. Core sales in November dropped 0.9%, upwardly revised from a previously reported fall of 1.0%.
Separately, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending February 7 increased by 25,000 to 304,000 from the previous week’s revised total of 279,000.
Analysts had expected initial jobless claims to rise by 6,000 to 285,000 last week.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.11% to 94.19.
Traders were looking ahead to the release of preliminary data on U.S. consumer sentiment due later in the day, for further indications on the strength of the recovery in the labor market.
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.
Meanwhile, investors continued to follow developments in Greece after talks with European Union officials ended without an agreement on Wednesday, though both sides said there was still hope for a deal. Further talks are due to be held next Monday.
Greece’s current bailout is due to expire on February 28 and the new Greek government does not want it extended, fuelling fears over a conflict with its creditors which could trigger the country’s exit from the euro zone.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for March delivery gained $1.08, or 1.88%, to hit $60.36 a barrel, with the spread between the Brent and the WTI crude contracts stranding at $8.35.