Oil futures traded little changed early Thursday on mixed U.S. economic data, with third-quarter U.S. economic growth revised downward but jobless claims dropping unexpectedly.
Light, sweet crude for February delivery was up 44 cents a barrel, or 0.5%, to $99.11 on the New York Mercantile Exchange, after trading as high as $99.39 earlier in the session. Brent crude on the ICE Futures Europe exchange was up 20 cents, or 0.2%, at $107.91 a barrel. Volume was about half normal levels because of the holiday week.
The Commerce Department said the U.S. economy grew at an annualized rate of 1.8% during the third quarter, lower than its previous estimate of 2.0% and lower than analysts’ consensus estimate of 2.0%. The downward revision was due to a recalibration of how much consumers spent during the quarter.
The Labor Department said initial jobless claims fell unexpectedly last week, decreasing 4,000 to 364,000 in the week ended Dec. 17, reaching the lowest level since April 2008.
“I think it’s hard to be negative on crude right now,” said Ray Carbone, president of Paramount Options. “The market is holding up well, and I don’t expect that to change.”
Meanwhile, instability continued to mount in Iraq, with the unity government fraying amid rising sectarian tensions and a wave of bombings in the immediate aftermath of the U.S. troop withdrawal. Iraq exported 2.1 million barrels of oil per day in November, according to its oil ministry.
EasyForexNews Research Team