By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Crude-oil futures on Thursday advanced for a third day, as an austerity agreement in Greece and a decline in U.S. jobless claims fanned hopes of more oil demand.
Crude for March delivery CL2H +0.75% rose $1.14, or 1.1%, to $99.83 a barrel on the New York Mercantile Exchange. It rose as high as $100.03 a barrel earlier.
Oil inched higher on Wednesday, gaining 30 cents to end at $98.71 a barrel. It had topped $100 as well, but scaled back gains as an inventories report, while supportive and showing a small increase, disappointed next to a trade group’s report showing a steep decline in supplies.
Fundamentals took a backseat on Thursday, after European Central Bank President Mario Draghi confirmed that Greek politicians had reached an agreement over austerity measures, paving the way for more financial aid. Read more in Europe Markets.
“Whatever the reality and ultimate outcome for Greece, this will be seen, for a time, as having the Greek problem solved,” analysts at the Kilduff Report said in a note to clients. “While the market reaction is positive, a classic buy-the-rumor, sell the news situation could ensue,” they added.
Also boosting market sentiment, the Labor Department reported Thursday initial jobless claims fell by 15,000 to a seasonally adjusted 358,000 in the week ended Feb. 4, near a four-year low. Read more on jobless claims.
U.S. stocks opened higher on the data and on the Greece news, helping oil as stocks are seen as a barometer of economic conditions and as such a good indication of future oil demand. Read about Thursday’s stock market action.
Meanwhile, the dollar traded lower, providing a third leg of support for oil futures. The dollar index DXY -0.13% , which compares the U.S. unit to a basket of six currencies, traded at 78.437, down from 78.589 in late North American trading Wednesday. Read more on currencies.
Natural-gas futures rose on Thursday as traders awaited for supply data from the Energy Information Administration due later on the day.
The March contract NG12H -0.45% rose 2 cents, or 0.8%, at $2.47 per million British thermal units.
Analysts surveyed by Platts expect the EIA to report a supply decline between 84 billion cubic feet and 88 bcf for the week ending Feb. 3.
Claudia Assis is a San Francisco-based reporter for MarketWatch.
