Crude Oil Ends Higher But Still Under $45 A Barrel

(RTTNews) - U.S. crude oil futures ended higher on Thursday, rebounding from a 4 percent tumble yesterday, after fluctuating for much of the day as the dollar weakened against a basket of some major currencies and the market expecting a drop in U.S. production with the steep fall in crude prices.

However, the gains were limited as investors continued to worry over the slowdown in the global economy, particularly the Chinese economy - the second largest energy consumer in the world. Meanwhile, global equity markets continued to tumble due to uncertainties linked to global economic growth.

The uptick in prices were also checked on some disappointing economic data from the U.S., with durable goods orders dropping for the first time in three months, as a strong dollar and lackluster global economy hurt demand for big-ticket items from the U.S., particularly jets. Meanwhile, the number of people filing initial claims for unemployment benefits in the U.S. moved up less than expected last week, just off its recent lows.

Nonetheless, on a positive note, U.S. new home sales continued to surge in August, as buyers took advantage of low interest rates and better employment.

Elsewhere, Norway's central bank slashed its key interest rate to 0.75 percent from 1 percent on Thursday, in response to worries about the impact of low crude prices on the economy.

A stronger dollar and speculation that OPEC will continue its record production despite waning demand has hurt oil prices in recent times.

Light Sweet Crude Oil futures for November delivery, the most actively traded contract, gained $0.43 or 1.0 percent, to settle at $44.91 a barrel on the New York Mercantile Exchange Thursday.

Crude prices for November delivery scaled a high of $45.17 a barrel intraday and a low of $43.71.

On Wednesday, crude oil plummeted $1.88 or 4.1 percent, to settle at $44.48 a barrel, after a report from the U.S. Energy Information Administration showed an increase in domestic production with the upcoming refinery maintenance season, notwithstanding a more than expected decline in crude stockpiles last week.

Data from the U.S. Energy Information Administration showed crude stockpiles in the U.S. to have dropped 1.9 million barrels in the week ended September 18, while analysts anticipated a decline of 0.7 million barrels.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 95.96 on Thursday, down from its previous close of 96.20 in late North American trade on Wednesday. The dollar scaled a high of 96.30 intraday and a low of 96.46.

The euro trended higher against the dollar at 1.1226 on Thursday, as compared to its previous close of 1.1187 in North American trade late Wednesday. The euro scaled a high of 1.1297 intraday and a low of 1.1165.

In economic news, a report from the U.S. Department of Commerce on Thursday showed durable goods orders to have dropped 2 percent in August, which was in line with economists' expectation. Durable goods orders were down for the first time in three months, as the strong dollar and lackluster global economy hurt demand for big-ticket items from the U.S., particularly jets.

The number of people filing first-time unemployment claims edged up less than expected for the latest week, according to government data released on Thursday. This left the figure just off its recent lows.

The U.S. Department of Labor said initial jobless claims, a measure of the number of first-time unemployment filings, came in at 267,000 for the week ended September 19. This was up 3,000 from the previous week's figure of 264,000. Economists had expected the figure to come in at 275,000.

U.S. new home sales continued to surge in August, as buyers took advantage of low interest rates and better employment. New home sales rose 5.7% at an annual rate of 552,000 in August, according to the Census Bureau. Economists expected sales to rise 1.6 percent last month to a seasonally adjusted annual rate of 515,000. New home sales are 21.6 percent higher compared to August 2014.

From Europe, Germany's consumer confidence is likely to weaken in October, survey data from market research group GfK showed Thursday. The forward-looking consumer sentiment index dropped to 9.6 in October from 9.9 in September. It was forecast to ease marginally to 9.8.

German business sentiment improved unexpectedly in September, reports said citing data from the Munich-based Ifo Institute on Thursday. The Ifo Business Climate Index rose to 108.5 in September from 108.3 in August. It was forecast to fall to 107.9.

French business confidence reached its highest level in more than four years in September, survey data from the statistical office Insee showed Thursday. The business sentiment index for manufacturers improved to 104 in September from 103 in August. This was the highest score since August 2011, the Insee said. Economists had forecast the indicator to remain unchanged at 103.

U.K. mortgage approvals rose to its highest level since early 2014 in August, British Bankers' Association reported Thursday. The number of mortgage approvals rose to 46,743 in August from 46,315 in July. This was the highest since February 2014, when it totaled 47,581.