WTI oil futures hit session highs after Philly Fed data

Investing.com - West Texas Intermediate oil prices rose to the highest levels of the session on Thursday, after data showed that manufacturing activity in the Philadelphia-region expanded at the fastest rate since December 1993 in November.

On the New York Mercantile Exchange, crude oil for delivery in January tacked on 67 cents, or 0.9%, to trade at $75.17 a barrel.

The Federal Reserve Bank of Philadelphia said that its manufacturing index improved to a reading of 40.8 this month from October’s reading of 20.7. Analysts had expected the index to decline to 18.5 in September.

At the same time, the National Association of Realtors said that existing home sales increased 1.5% to a 13-month high of 5.26 million units last month from 5.18 million in September.

Also Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending November 15 decreased by 2,000 to 291,000 from the previous week's revised total of 293,000.

A separate report showed that U.S. consumer prices were flat last month, compared to estimates for a decline of 0.1% and following a gain of 0.1% in September.

Core consumer prices, which exclude food and energy costs, increased by 0.2% in October, in line with expectations. Core consumer prices inched up 0.1% in September.

Demand for the dollar continued to be underpinned after the minutes of the Federal Reserve's latest meeting indicated that officials believe the economic recovery is strong enough to withstand external threats to growth.

Fed officials largely agreed that the economy was improving and no longer needed stimulus tools such as asset purchases, though concerns persisted that inflation expectations may be dipping, according to the minutes released Wednesday.

While the minutes offered little additional clarity about when rates could start to rise, markets continued to bet that the U.S. central bank will start raising rates sometime around September 2015.

Oil prices were lower earlier in the session as concerns over the global economy mounted following the release of disappointing manufacturing data out of China and the euro zone.

Research group Markit reported that the euro zone’s manufacturing purchasing managers’ index fell to 50.4 in November from 50.6 in October.

The report said the PMI surveys pointed to economic growth of just 0.1% to 0.2% in the current quarter.

Germany private sector activity fell to a 16-month low this month, as factory output stalled. The country’s manufacturing PMI fell to 50 and service sector activity also slowed, with the PMI dropping to 52.1 from 54.4.

French private sector output contracted for the seventh consecutive month, with the manufacturing PMI falling to a three-month low of 47.6 and the services PMI ticking up to 48.8 from 48.3 in October, still well below the 50 level showing contraction.

Meanwhile, in China, data showed that China’s preliminary HSBC manufacturing index slumped to a six-month low of 50.0 in November from 50.4 in October and below forecasts for 50.3.

The data showed that the level of output in factories contracted for the first time in six months in November, underlining concerns over a cooling economy.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for January delivery picked up 74 cents, or 0.95%, to trade at $78.85 a barrel.

Market players continued to weigh the likelihood that the Organization of the Petroleum Exporting Countries will cut output to support prices when it meets next week.

Libya's OPEC governor Samir Kamal said Wednesday that oil ministers from the 12-member group should trim excess supply and cut its output target when they meet in Vienna on November 27.

Oil ministers from Venezuela and Ecuador have also asked for action to prevent further price declines, while Saudi Arabia and Kuwait have resisted calls to lower production.

Concerns over weakening global demand combined with indications that OPEC producers will not cut output have weighed on prices in recent months.

London-traded Brent prices have fallen nearly 33% since June, when it climbed near $116, while WTI futures are down almost 32% from a recent peak of $107.50 in June.