Oil prices settle up on weaker US dollar, mixed economic news
Oil prices edged up on Thursday as investors weighed a weaker U.S. dollar, potential OPEC+ output increase, mixed economic news, conflicting U.S. tariff signals and news from the Russia-Ukraine war.
Brent crude futures rose 43 cents, or 0.7%, to settle at $66.55 a barrel. U.S. West Texas Intermediate (WTI) crude rose 52 cents, or 0.8%, to settle at $62.79.
In the U.S., the number of people filing for unemployment benefits rose marginally last week, suggesting a resilient labor market despite economic turbulence caused by tariffs on imported goods.
Businesses are increasing prices and cutting financial guidance due to higher costs stemming from U.S. President Donald Trump's trade war, which has also roiled global supply chains.
U.S. Federal Reserve officials indicated in television interviews they see no urgency to change monetary policy as they seek more information to determine how trade tariffs are affecting the economy.
"Markets are still trying to make sense of the data, as employment stats show a resilient labor market while the Fed tempers bullishness with commentary that unemployment rates may be affected by tariffs," analysts at energy consulting firm Gelber and Associates said in a note.
The U.S. dollar staged a broad retreat on Thursday, as investor gloom over the lack of any real progress towards defusing the U.S.-China trade war reasserted itself.
A weaker U.S. currency makes dollar-priced commodities like oil less expensive for buyers using other currencies.
Source: Reuters
