Investing.com - Crude oil futures traded higher during U.S. afternoon hours Thursday, despite an official report indicating oil supplies increased more-than-expected last week.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD91.95 a barrel during U.S. afternoon trade, climbing 0.80%.
Earlier in the day, prices rose by as much as 1.75% to hit a session high of USD92.92 a barrel.
Prices traded at USD92.61 a barrel prior to the release of the EIA data.
The U.S. EIA said in its weekly report that U.S. crude oil inventories increased by 1.67 million barrels in the week ended October 5, compared to expectations for a 0.78 million barrel increase.
Total U.S. crude oil inventories stood at 366.4 million barrels as of last week.
Total motor gasoline inventories decreased by 0.5 million barrels, compared to expectations for a decline of 0.02 million barrels.
New York-traded oil prices were up sharply ahead of the data as market players continued to focus on escalating tensions between Syria and Turkey and the possibility that Iran could support Syria in such a dispute.
Tensions between Turkey and Syria have been growing since Syrian shells last week killed five people in a Turkish border village.
Growing tensions between Iran and Israel also remain in focus. There are fears that an escalation of hostilities between Israel and Iran could set off a conflict across the region and send oil prices skyrocketing.
Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2011.
Meanwhile, stronger-than-expected jobless claims figures in the U.S. also contributed to gains.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 30,000 to a seasonally adjusted 339,000, compared to expectations for an increase of 1,000 to 370,000.
It was the lowest reading since February 2008, reinforcing the view that the U.S. labor market is improving, following last week’s stronger-than-expected non-farm payrolls report.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Sentiment was also boosted by optimism that a downgrade on Spain by ratings agency Standard & Poor’s would force the country into requesting a formal bailout.
S&P cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”
Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery surged 0.95% to trade at USD115.42 a barrel, with the spread between the Brent and crude contracts standing at USD23.40 a barrel, the widest since October 2011.
London-traded Brent prices have been well-supported in recent sessions, as a combination of lingering concerns over a disruption to supplies from the Middle East and worries over declining production in the North Sea-region have been boosting prices.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD91.95 a barrel during U.S. afternoon trade, climbing 0.80%.
Earlier in the day, prices rose by as much as 1.75% to hit a session high of USD92.92 a barrel.
Prices traded at USD92.61 a barrel prior to the release of the EIA data.
The U.S. EIA said in its weekly report that U.S. crude oil inventories increased by 1.67 million barrels in the week ended October 5, compared to expectations for a 0.78 million barrel increase.
Total U.S. crude oil inventories stood at 366.4 million barrels as of last week.
Total motor gasoline inventories decreased by 0.5 million barrels, compared to expectations for a decline of 0.02 million barrels.
New York-traded oil prices were up sharply ahead of the data as market players continued to focus on escalating tensions between Syria and Turkey and the possibility that Iran could support Syria in such a dispute.
Tensions between Turkey and Syria have been growing since Syrian shells last week killed five people in a Turkish border village.
Growing tensions between Iran and Israel also remain in focus. There are fears that an escalation of hostilities between Israel and Iran could set off a conflict across the region and send oil prices skyrocketing.
Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2011.
Meanwhile, stronger-than-expected jobless claims figures in the U.S. also contributed to gains.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 30,000 to a seasonally adjusted 339,000, compared to expectations for an increase of 1,000 to 370,000.
It was the lowest reading since February 2008, reinforcing the view that the U.S. labor market is improving, following last week’s stronger-than-expected non-farm payrolls report.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Sentiment was also boosted by optimism that a downgrade on Spain by ratings agency Standard & Poor’s would force the country into requesting a formal bailout.
S&P cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”
Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery surged 0.95% to trade at USD115.42 a barrel, with the spread between the Brent and crude contracts standing at USD23.40 a barrel, the widest since October 2011.
London-traded Brent prices have been well-supported in recent sessions, as a combination of lingering concerns over a disruption to supplies from the Middle East and worries over declining production in the North Sea-region have been boosting prices.