May crude futures settled Wednesday at the highest level since October 2008 NEW YORK (MarketWatch) -- Oil futures rose for a fourth session on Thursday to trade above $85 a barrel, as strong manufacturing data from China and the euro zone, as well as U.S. jobless data, boosted hopes of strengthening energy demand. Helping oil add to gains, the number of people applying for unemployment benefits fell 6,000 in the week ended March 27 to a seasonally adjusted 439,000, the Labor Department reported Thursday. Economists surveyed by MarketWatch had expected a result of 443,000. Crude oil for May delivery gained $1.23 cents, or 1%, to $84.78 a barrel on the New York Mercantile Exchange. Earlier, the contract hit an intraday high of $85.07, according to FactSet. Crude for June delivery gained $1.03, or 1.2%, to $85.21 a barrel. Crude futures have finished with gains over the past three sessions. On Wednesday, oil prices settled at their highest level since October 2008, as a weaker dollar helped offset an increase in U.S. crude-oil inventories. Economic data underpinned an early rally in oil prices on Thursday. China's manufacturing activity accelerated in March, according to two industrial surveys. Read more. Separately, the Bank of Japan's quarterly tankan survey of business sentiment showed significantly less pessimism among the nation's biggest firms. Also, manufacturing activity across the 16-nation euro zone grew at its fastest pace since June 2006, according to the final Markit euro-zone manufacturing purchasing-managers index for March. See full story on euro-zone activity. "In recent weeks, the relationship between financial markets and oil prices has been stronger than the euro/dollar relationship," said analysts at Vienna-based JBC Energy in a note. The correlation between oil prices and the Dow Jones Industrial Average (INDU 10,944, +87.59, +0.81%) remains positive, highlighting the role that economic sentiment has on oil prices, the analysts said.

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