Investing.com - Oil prices plummeted to 6-week lows in U.S. trading on Thursday after a flurry of economic indicators in the U.S. and Europe disappointed investors, stoking fears that the global economy still battles headwinds and will demand less fuels and energy going forward.
Rising U.S. crude stockpiles pushed down prices as well.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at USD92.98 a barrel on Thursday, down 2.35%, off from a session high of USD94.91 and up from an earlier session low of USD92.67.
U.S. crude oil inventories rose more than expected last week, official data revealed on Thursday.
In a report, Energy Information Administration said that U.S. crude oil inventories rose by 4.143 million barrels compared with a weekly gain of 560,000 barrels in the preceding week.
Analysts had expected U.S. crude oil stockpiles to rise by only 1.8 million barrels last week.
The news sent prices plunging as did weak economic indicators in both the U.S. and Europe.
London-based Markit Economics reported earlier that the eurozone's services purchasing managers’ index for the dropped to 47.3 in February from 48.6 in January, missing expectations for an increase to 49.2.
Markit added that the eurozone's manufacturing PMI fell to 47.8 from 47.9 in January.
Analysts had expected the index to improve to 48.4.
Germany’s manufacturing PMI, meanwhile, rose to 50.1 from a final reading of 49.8 in January, and while moving into expansion territory for the first time in 12 months, the figure missed expectations for an uptick to 50.5.
A reading above 50.0 signifies expansion.
In the U.S., the U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless claims in the week ending Feb. 16 rose by 20,000 to 362,000, surpassing market calls for an increase of 13,000 to 355,000.
Also in the U.S., the Federal Reserve Bank of Philadelphia said that its manufacturing index fell to -12.5 in February from January’s reading of -5.8, the sharpest contraction since July.
Analysts were hoping for a gain into positive territory at 1.0.
Energy investors shrugged off improving data out of the U.S. housing sector.
The National Association of Realtors reported earlier that existing home sales jumped up 0.4% to a seasonally adjusted 4.92 million units in January, up from December’s revised total of 4.90 million units.
Analysts had expected U.S. existing home sales to hold steady at 4.90 million units in January.
Elsewhere in the U.S., the country's monthly consumer price index remained unchanged in January.
The core inflation rate, stripped of volatile food and energy prices, rose 0.3%, outpacing market expectations for a 0.2% reading and above December's 0.1% reading, which fueled already brewing market talk that the Federal Reserve may be closer to winding down monetary stimulus tools that send commodity prices rising as side effects.
Elsewhere on the ICE Futures Exchange, Brent oil futures for April delivery were down 1.54% at USD113.81 a barrel, up USD20.83 from its U.S. counterpart.
Rising U.S. crude stockpiles pushed down prices as well.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at USD92.98 a barrel on Thursday, down 2.35%, off from a session high of USD94.91 and up from an earlier session low of USD92.67.
U.S. crude oil inventories rose more than expected last week, official data revealed on Thursday.
In a report, Energy Information Administration said that U.S. crude oil inventories rose by 4.143 million barrels compared with a weekly gain of 560,000 barrels in the preceding week.
Analysts had expected U.S. crude oil stockpiles to rise by only 1.8 million barrels last week.
The news sent prices plunging as did weak economic indicators in both the U.S. and Europe.
London-based Markit Economics reported earlier that the eurozone's services purchasing managers’ index for the dropped to 47.3 in February from 48.6 in January, missing expectations for an increase to 49.2.
Markit added that the eurozone's manufacturing PMI fell to 47.8 from 47.9 in January.
Analysts had expected the index to improve to 48.4.
Germany’s manufacturing PMI, meanwhile, rose to 50.1 from a final reading of 49.8 in January, and while moving into expansion territory for the first time in 12 months, the figure missed expectations for an uptick to 50.5.
A reading above 50.0 signifies expansion.
In the U.S., the U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless claims in the week ending Feb. 16 rose by 20,000 to 362,000, surpassing market calls for an increase of 13,000 to 355,000.
Also in the U.S., the Federal Reserve Bank of Philadelphia said that its manufacturing index fell to -12.5 in February from January’s reading of -5.8, the sharpest contraction since July.
Analysts were hoping for a gain into positive territory at 1.0.
Energy investors shrugged off improving data out of the U.S. housing sector.
The National Association of Realtors reported earlier that existing home sales jumped up 0.4% to a seasonally adjusted 4.92 million units in January, up from December’s revised total of 4.90 million units.
Analysts had expected U.S. existing home sales to hold steady at 4.90 million units in January.
Elsewhere in the U.S., the country's monthly consumer price index remained unchanged in January.
The core inflation rate, stripped of volatile food and energy prices, rose 0.3%, outpacing market expectations for a 0.2% reading and above December's 0.1% reading, which fueled already brewing market talk that the Federal Reserve may be closer to winding down monetary stimulus tools that send commodity prices rising as side effects.
Elsewhere on the ICE Futures Exchange, Brent oil futures for April delivery were down 1.54% at USD113.81 a barrel, up USD20.83 from its U.S. counterpart.