Crude Oil Ends Higher On Upbeat U.S. Data, Ukraine

(RTTNews) - U.S. crude oil snapped a three-day loss to end higher on Thursday, amid uncertainty surrounding the upcoming referendum in the Crimea region of Ukraine for a vote to break away and join Russia. Oil prices also found support after some upbeat economic data from the U.S. showed retail sales to have improved with initial claims for unemployment benefits dropping, even as China growth worries continued to weigh on markets.

Oil prices plummeted yesterday on demand growth concerns after an official weekly oil report from the U.S. Energy Information Administration showed crude stockpiles in the U.S. to have jumped nearly three times more than expected last week, with added pressure after news reports of U.S. plans to release about 5 million barrels of oil from its Strategic Petroleum Reserve.

After strong gains in February, crude futures started March at a yearly peak of near $105 a barrel but have since turned sharply lower, with dwindling demand from China and the possibility of a U.S. slowdown have weighed on oil prices.

Light Sweet Crude Oil futures for April delivery, the most actively traded contract, gained $0.21 or 0.2 percent to close at $98.20 a barrel on the New York Mercantile Exchange Thursday.

Crude prices for April delivery scaled a high of $98.60 a barrel intraday and a low of $97.67.

Yesterday, crude oil prices declined sharply after data from the Energy Information Administration showed U.S. crude oil inventories jumped by 6.2 million barrels in the week ended March 7, well above market expectations for an increase of 2.2 million barrels.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.65 on Thursday, up from its previous close of 79.61 late Wednesday in North American trade. The dollar scaled a high of 79.69 intraday and a low of 79.27.

The euro traded lower against the dollar at $1.3897 on Thursday, as compared to its previous close of $1.3904 late Wednesday in North America. The euro scaled a high of $1.3970 intraday and a low of $1.3890.

In economic news, retail sales in the U.S. rose slightly more than expected in February, a report from the Commerce Department showed Thursday. Retail sales rose 0.3 percent in February following a revised 0.6 percent drop in January. Economists expected sales to edge up by 0.2 percent compared to the 0.4 percent decrease originally reported for the previous month.

U.S. import prices rose much more than expected in February with prices for fuel imports showing a significant increase, a Labor Department report showed Thursday. Import prices climbed by 0.9 percent in February following an upwardly revised 0.4 percent increase in January. Economists expected import prices to rise by 0.5 percent compared to the 0.1 percent uptick originally reported for the previous month.

First-time claims for U.S. unemployment benefits unexpectedly dropped to a three-month low in the week ended March 8, a report from the Labor Department revealed Thursday. Initial jobless claims edged down to 315,000, a decrease of 9,000 from the previous week's revised figure of 324,000. Economists expected jobless claims to creep up to 330,000 from the 323,000 originally reported for the previous week.

A Commerce Department report on Thursday showed a moderate increase in U.S. business inventories in January, with a notable drop in business sales. Business inventories rose 0.4 percent in January following a 0.5 percent increase in December. This was in line with economists' estimates. Meanwhile, the U.S. Commerce Department said business sales dropped by 0.9 percent in January after edging down by 0.1 percent in December.

Meanwhile, the U.S. Treasury Department on Thursday said the deficit in federal budget narrowed in February by about 5 percent from last year, attributed mainly to higher receipts with a modest rise in spending. The February deficit was recorded at $194 billion, as compared to the $204 billion in the similar period last year.

From Europe, the Bundesbank in its annual statement on Thursday said the pace of growth in the Germany economy is likely to increase again in 2014 and 2015. The low level of interest rates, low unemployment rate, and a distinct increase in earnings, are fueling housing construction. However, foreign trade has not provided any positive impetus of late. Even so, the current account surplus remains high, the central bank noted.