Investing.com - Crude oil futures rallied over 2% on Friday, as the U.S. dollar weakened after a string of disappointing U.S. data on Thursday and as markets eyed a fresh batch of U.S. economic reports due later in the day.
On the New York Mercantile Exchange, U.S. crude oil for delivery in April traded $1 or 2.12% higher to $49.18 a barrel during European early afternoon trade.
Prices plunged $2.82 or 5.53% on Thursday to settle at $48.17.
Futures were likely to find support at $47.46, the low from February 2 and resistance at $50.95, Thursday's high.
Sentiment on the dollar remained vulnerable after the U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits increased by 31,000 to 313,000 last week from the previous week’s revised total of 282,000.
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.
On a more positive note, 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.
Oil prices typically strengthen when the U.S. currency weakens as the dollar-priced commodity becomes cheaper for holders of other currencies.
Market participants were now looking to revised data on U.S. fourth quarter growth, as well as reports on pending home sales, business activity in the Chicago region and consumer sentiment due later in the day, for further indications on the strength of the U.S. economic recovery.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for April delivery jumped $1.07, or 1.79%, to hit $61.13 a barrel, with the spread between the Brent and the WTI crude contracts stranding at $11.95.