DTN Oil Update
Oil Futures Climb Driven by Mideast Tensions
DAVENPORT, Fla. (DTN) -- Oil futures advanced Thursday, driven by renewed geopolitical tensions in the Middle East, coupled with a stronger-than-expected U.S. jobless claims report. The gains ended a 3-day losing streak for oil contracts.
The U.S. Department of Labor reported Thursday morning that initial jobless claims fell by 7,000 to 221,000 for the week ended July 12, marking the lowest level in two months and signaling continued strength in the labor market. The 4-week moving average dropped to 229,500, its lowest since late May.
The rise in oil futures prices was supported by reports of drone attacks on oil infrastructure in Iraq's Kurdistan region, reigniting concerns over supply disruptions and boosting the Middle East risk premium.
The NYMEX WTI futures contract for August delivery settled $1.25 higher at $67.63 barrel (bbl), recovering from a session low of $66.29 bbl. The ICE Brent futures contract for September delivery rose by $1.07 to settle at $69.59 bbl, after trading as low as $68.27 bbl on the day.
The August ULSD futures contract gained $0.0770 to $2.4685 gallon, while August RBOB gasoline futures edged up by $0.0280 to $2.1720 a gallon.
The U.S. Dollar Index inched up by 0.365 points to 98.44.
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