Crude Oil Ends Higher; Gains 0.5% For Week

(RTTNews) - U.S. crude oil moved up for a second straight session to end at a more than six-week high on Thursday, after some encouraging economic data from the U.S. with Fed Chief Janet Yellen's statement on the state of the economy lifting sentiments, notwithstanding a huge surge in U.S. crude stockpiles last week.

The conflict in eastern Ukraine continued to escalate with at least three pro-Russian activists killed east of the country, fueling fears of supply disruption from Russia. However, latest news reports say a deal has been reached between Russia and the West to check further escalation of the situation in eastern Ukraine. The U.S., Russia, the European Union and Ukraine have been holding talks in Geneva over the crisis on Thursday.

Russia is the second largest crude oil supplier after Saudi Arabia.

In economic news, growth in Philadelphia-area manufacturing activity touched a seven-month high, accelerating much more than anticipated in April, a Federal Reserve Bank of Philadelphia's survey showed.

Meanwhile, first time unemployment benefit claims in the U.S. rebounded slightly last week, after having reported its lowest level in almost seven years in the previous week, a Labor Department report showed. The claims, although higher for the week, were still lower than what analysts expected and close to its lowest level since 2007.

Light Sweet Crude Oil futures for May delivery, the most actively traded contract, gained $0.54 or 0.5 percent to close at $104.30 a barrel on the New York Mercantile Exchange Thursday.

Crude prices for May delivery scaled a high of $104.78 a barrel intraday and a low of $103.54.

On Wednesday, crude oil scaled a seven-week high on developments in Ukraine with tensions mounting as government forces tried to evict pro-Russian activists occupying government buildings, notwithstanding a four-fold jump in U.S. crude stockpiles.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.84 on Thursday, up from its previous close of 79.83 late Wednesday in North American trade. The dollar scaled a high of 79.86 intraday and a low of 79.58.

The euro traded higher against the dollar at $1.3819 on Thursday, as compared to its previous close of $1.3816 late Wednesday in North America. The euro scaled a high of $1.3864 intraday and a low of $1.3812.

In economic news, data from the U.S. Labor Department showed initial jobless claims were slightly up from its lowest level since 2007, coming in 304,000 for the week ended April 12, an increase of 2,000 from the previous week's revised level. The previous week's level was revised up by 2,000 from 300,000 to 302,000.

Meanwhile, growth in Philadelphia-area manufacturing activity accelerated much more than anticipated in April, the Federal Reserve Bank of Philadelphia's Business Outlook Survey showed Thursday. The Philly Fed's diffusion index of current activity climbed to 16.6 in April from 9.0 in March, with a positive reading indicating growth in regional manufacturing activity. Economists expected the index to edge up to a reading of 10.0.

Elsewhere, the Japanese government downgraded its assessment of the economy for the first time since November 2012. In its monthly report, the Cabinet Office said the Japanese economy is on a moderate recovery trend, while some weak movements are seen lately due to a reaction after a last-minute rise in demand before a consumption tax increase.