Crude Oil Ends Above $94 On Supply Concerns, Ukraine

(RTTNews) - U.S. crude oil ended a higher for third straight session Thursday, amid supply concerns and worries over developments in Ukraine, even as crude stockpiles in the U.S. declined more than expected last week.

Ukraine has accused Russian forces of seizing a border town in the eastern part of the country. Russia, a top oil producer, already faces sanctions for its role in stirring up the conflict in Ukraine.

Ukraine President Petro Poroshenko accused Russia of sending its troops into his country and called for an urgent meeting of the United Nations Security Council and the European Council to discuss the issue.

Oil prices were also supported by some upbeat data with the U.S. economy expanding faster during the second quarter than previously estimated.

Revised figures from the U.S. Commerce Department showed Gross Domestic Product, a broad measure of economic activity, rose by 4.2% in the April-to-June period. Economists expected second quarter GDP growth to hold steady with the estimate of 4.0 percent released last month.

Light Sweet Crude Oil futures for October delivery, the most actively traded contract, gained $0.67 or 0.7 percent to close at $94.55 a barrel on the New York Mercantile Exchange Thursday.

Crude prices for October delivery scaled a high of $94.71 a barrel intraday and a low of $93.45.

On Wednesday, crude oil futures ended higher after a weekly official oil report from the U.S. Energy Information Administration showed crude stockpiles in the U.S. to have dropped more than expected last week.

A report from the U.S. Energy Information Administration on Wednesday showed U.S. crude oil inventories to have dropped 2.1 million barrels in the week ended August 22, while analysts anticipated a decline of 1.3 million barrels. U.S. crude oil inventories were at 360.50 million barrels, end last week.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 82.48 on Wednesday, up from its previous close of 82.47 late Wednesday in North American trade. The dollar scaled a high of 82.59 intraday and a low of 82.62.

The euro trended lower against the dollar at $1.3183 on Thursday, as compared to its previous close of $1.3193 late Wednesday in North American trade. The euro scaled a high of $1.3220 intraday and a low of $1.3160. In economic news from the U.S., pending home sales in rebounded in July due to some low interest rates and confidence in the U.S. economic recovery, according to the National Association of Realtors. NAR's Pending Home Sales Index climbed 3.3 percent to 105.9 in July from 102.5 in June. Despite having now risen in four of the last five months, pending home sales remain 2.3 percent below July 2013.

Meanwhile, the number of people filing claims for first-time unemployment benefits in the U.S. remained below the key 300,000 mark for a second consecutive week, a good sign for job growth.

A U.S. Department of Labor report showed initial jobless claims, a key gauge of layoff activity, came in at 298,000 for the week ended August 22. This was down 1,000 compared to the previous week's revised total of 299,000. Economists expected initial claims at 300,000, compared to the 298,000 originally reported for the previous week.

From Europe, eurozone economic confidence weakened more-than-expected in August to its lowest level in eight months, underscoring rising pessimism amid heightened geopolitical tensions and stagnating economic recovery. The index dropped to 100.6 in August, the lowest score since December, from 102.1 in July, the European Commission said Thursday.

Meanwhile, Germany's inflation in August held steady at its lowest level in four-and-a-half years, preliminary figures from the statistical office Destatis showed Thursday. The consumer price index rose 0.8 percent year-on-year, same as in July and in line with economists' expectations. The figure was the lowest since February 2010.