Crude oil futures erased gains on Thursday, as prices were pressured by a broadly higher U.S. dollar and after disappointing U.S. employment data added to concerns over the economic recovery of the nation’s largest crude consumer.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at USD100.95 a barrel during U.S. morning trade, easing down 0.14%.
It earlier rose by as much as 0.75% to USD101.86 a barrel, the highest price since June 1.
The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending June 4 rose by 1K to a seasonally adjusted 427,000 in the week ended June 4. The prior week's figure was revised to 426,000 from an originally reported 422,000.
A stronger U.S. dollar weighed, as the greenback bounced back against the euro and gained versus a basket of currencies. The dollar index was up 0.47% to trade at 74.66.
Dollar-denominated oil futures contracts tend to rise when the dollar falls, as this makes oil cheaper for buyers in other currencies.
Meanwhile, markets assessed the impact of the Organization of the Petroleum Exporting Countries failure to agree on a rise in production quotas on Wednesday.
Saudi Arabia, OPEC’s biggest producer, Kuwait, Qatar and the United Arab Emirates voted for a 1.5 million-barrel-per-day increase in oil production, according to Saudi Arabian oil minister Ali al-Naimi.
Libya, Angola, Ecuador, Algeria, Iran and Venezuela were opposed to the increase, according to OPEC delegates.
Following the meeting, al-Naimi said Gulf Countries, led by Saudi Arabia were ready to “meet market demand" regardless of OPEC's decision.
Global financial service provider BNP Paribas said in a report earlier that, “The non-outcome reinforces the floor under oil prices and leaves the output gap in place, but there is clear evidence of a slowdown in the global economy keeping demand in check.”
Elsewhere, on the ICE Futures Exchange, Brent oil futures for July delivery shed 0.17% to trade at USD117.67 a barrel, up USD16.72 on its U.S. counterpart.