DTN Oil Update
Oil Futures Mostly Higher on Crude Draw, Job Claims Dip
DAVENPORT, Fla. (DTN) -- U.S. jobless claims came in better than expected Thursday, offering a bit of reassurance about the labor market and economic resilience. The Labor Department reported 217,000 initial claims for the week ended July 19, down 4,000 from the prior week and well below market expectations for 227,000.
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Oil futures were mostly higher in early trade, supported by a sharper-than-expected draw in U.S. crude inventories reported Wednesday by the Energy Information Administration. The front-month NYMEX WTI contract rose $0.71 to $65.96 barrel (bbl), and ICE Brent for September delivery gained $0.60 to $69.11 bbl.
NYMEX ULSD futures dropped $0.0247 to $2.4243 gallon, and RBOB futures slipped $0.0019 to $2.1197 gallon, though both bounced back from lows seen earlier in the session.
The U.S. dollar strengthened again, up 0.277 points to 97.220 against a basket of foreign currencies.
Market sentiment was also influenced by developments on the trade front. A newly announced deal between the U.S. and Japan brought some cautious optimism, outlining a scaled-back 15% tariff and $550 billion in planned Japanese investment. The agreement includes provisions to expand access for U.S. energy, agriculture, and automotive exports. Even so, traders remain watchful as the White House's Aug. 1 tariff deadline nears, with broader trade talks still unresolved.
