Big fall in US jobless claims lifts oil prices

15-Oct-12

Oil prices ended the previous week on a higher note, as abig fall in U.S. unemployment benefit claims suggested some improvement in its economy. The U.S. Labor Department said on Thursday that applications for unemployment benefits fell last week to 339,000. That's the lowest in more than four years. If sustained, the lower level could signal stronger hiring. This has raised expectations of increased demand for energy. Benchmark oil on the Nymex for November delivery inched up to US$92.1. Brent crude fell 27 cents to US$114.4 on the ICE Futures Exchange in London. Thursday also saw oil prices inch up as tension between Turkey and Syria raised concerns that crude oil supplies from the Middle East could be disrupted.