Investing.com - Oil futures tumbled to a fresh five-year low on Thursday, as the U.S. dollar strengthened after data showed that U.S. jobless claims rose less-than-expected last week and that U.S. retail sales increased more than markets had anticipated last month.
On the New York Mercantile Exchange, crude oil for delivery in January hit a session low of $60.10 a barrel, a level not seen since July 2009, before trading at $60.83 during European morning hours, down 11 cents, or 0.18%.
The U.S. dollar index, which measures the greenback against a basket of six major currencies, was up 0.5% at 88.70, not far from Monday's five-year high of 89.53.
Dollar-denominated oil futures contracts tend to fall when the dollar rises, as this makes oil more expensive for buyers in other currencies.
In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending December 6 decreased by 3,000 to 294,000 from the previous week’s total of 297,000.
Separately, the U.S. Commerce Department said that retail sales increased by 0.7% last month, beating expectations for a gain of 0.4%. Retail sales growth for October was revised up to a 0.5% increase from a previously reported gain of 0.3%.
Core retail sales, which exclude automobile sales, advanced by 0.5% in November, easily surpassing forecasts for a 0.1% increase. Core sales in October rose by 0.4%.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for January delivery declined 23 cents, or 0.35%, to trade at $64.22 a barrel.
Saudi Arabia's oil minister Ali al-Naimi reiterated Wednesday that the kingdom has no plans to curb output, adding to bearish sentiment.
The Organization of the Petroleum Exporting Countries' monthly report released Wednesday forecast that global demand for the group's oil will drop to 28.9 million barrels a day next year, the lowest in 12 years, and down from 29.4 million barrels a day in 2014.
OPEC's collective crude output fell by 390,100 barrels a day in November to a total of 30.05 million barrels. According to the agency, the decline was led by Libya, which cut production by approximately 248,300 barrels per day to 638,000.
Saudi Arabia's output fell by 60,100 barrels a day to 9.59 million barrels a day, while production in Kuwait dropped by 59,400 barrels a day to 2.69 million barrels a day.
London-traded Brent prices have fallen nearly 44% since June, when it climbed near $116, while WTI futures are down almost 43% from a recent peak of $107.50 in June.
OPEC decided to maintain its output target at 30 million barrels a day last month, disappointing hopes the oil cartel would lower production to support the market, as a surplus develops amid the shale boom in the U.S., which is pumping at the fastest pace in more than 30 years.
Kuwait lowered official selling prices for its crude in January, following similar moves from Saudi Arabia and Iraq, indicating that OPEC exporters are stepping up a battle for market share with cheaper U.S. shale oil.