Investing.com - Crude oil futures remained lower on Thursday, after data showed that manufacturing activity in the Philadelphia-region contracted unexpectedly in February, fuelling concerns over the U.S. economic outlook.
On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in April traded in a range between $102.29 a barrel and $103.00 a barrel.
Nymex oil prices last traded at $102.68 a barrel during U.S. morning hours, down 0.15%.
The April contract rallied to $103.29 a barrel on Wednesday, the most since October 10, before trimming gains to settle at $102.84 a barrel, up 0.72%.
Nymex oil futures were likely to find support at $100.05 a barrel, the low from February 18 and resistance at $103.29 a barrel, the high from February 19.
The Federal Reserve Bank of Philadelphia said that its manufacturing index deteriorated to minus 6.3 this month from January’s reading of 9.4. Analysts had expected the index to inch down to 8.0 in February.
On the index, a reading above 0.0 indicates improving conditions, below indicates worsening conditions.
The report came after market research group Markit said that its preliminary U.S. manufacturing purchasing managers’ index increased to a seasonally adjusted 56.7 this month from a final reading of 53.7 in January. Analysts had expected the index to dip to 53.0 this month.
Also Thursday, The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending February 15 fell by 3,000 to a seasonally adjusted 336,000 from the previous week’s total of 339,000.
Analysts had expected jobless claims to fall by 4,000 to 335,000 last week.
Continuing jobless claims in the week ended February 8 rose to 2.981 million from 2.944 million in the preceding week. Analysts had expected continuing claims to increase to 2.970 million.
A separate report showed that consumer prices rose by as a seasonally adjusted 0.1% last month, matching forecasts, after rising 0.2% in December.
Year-over-year, consumer prices rose at an annualized rate of 1.6% in January, in line with expectations and up from 1.5% in December.
Consumer prices, excluding food and energy costs, inched up by a seasonally adjusted 0.1% last month, meeting estimates. Core consumer prices rose 0.1% in December.
Core CPI increased at annualized rate of 1.6% in January, down from 1.7% in December and in line with expectations.
Minutes of the Federal Reserve’s January meeting published Wednesday indicated that the central bank will maintain the current pace of reductions to its stimulus program, as long as the economy continues to improve as expected.
Meanwhile, investors looked ahead to key U.S. weekly supply data due later in the day to gauge the strength of oil demand from the world’s largest consumer.
Thursday’s government report was expected to show that crude oil stockpiles rose by 2 million barrels last week. The data was also expected to show that distillate stockpiles, including heating oil and diesel, decreased by 1.9 million barrels.
The report comes out one day later than usual due to the President’s Day holiday in the U.S. on Monday.
After markets closed Wednesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories fell by 0.5 million barrels in the week ended February 14, compared to expectations for an increase of 1.9 million barrels.
The report also showed that distillate stocks fell 0.7 million barrels, while gasoline stockpiles rose by 1.4 million barrels.
Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for April delivery declined 0.35% to trade at $110.11 a barrel, while the spread between the Brent and U.S. crude contracts stood at $7.43 a barrel.