(RTTNews) - The price of crude oil was recovering from its two-month low Thursday morning on demand concerns amid Middle East tension and speculation that China will introduce new stimulus measures to boost growth.
Light Sweet Crude Oil (WTI) futures for November delivery, added $0.61 to $88.75 a barrel. Yesterday, oil settled at a two-month low mostly on concerns over global economic slowdown and oil demand growth. Oil prices slumped notwithstanding a decline in U.S. crude stockpile and a couple of upbeat macroeconomic data from the world's largest economy.
Wednesday during trading hours, the EIA revealed that U.S. crude oil inventories unexpectedly edged down 0.50 million barrels, while gasoline stocks moved up 0.10 million barrels in the weekended September 28. Analysts expected crude oil inventories to move up 1.5 million barrels and gasoline stocks to remain flat last week.
This morning, the U.S. dollar was slipping back toward a two-week low versus the euro and steady near its 2-week high against sterling. The buck continued to advance versus the yen, while trading flat against the Swiss franc.
In economic news, the Bank of England maintained the asset purchase programme at GBP 375 billion and the key interest rate at a historic low of 0.50 percent.
The European Central Bank's will announce its interest rate decision at 7.45 a.m ET and is seen holding its interest rate at 0.75 percent.
Traders will look to the weekly jobless claims data from the U.S. Labor Department, due out at 8.30 a.m. ET. Economists expect the claims to increase to 370,000 from 359,000 in the previous week.
Later during the session, the Commerce Department will release its report on factory goods orders for August. Economists estimate a 6 percent drop in orders for factory goods following a 2.8 percent increase in July.
The Federal Reserve is due to release the minutes of its September 12-13 meeting at 2 p.m. ET.
