MW: Oil futures rise after five sessions of declines
By Polya Lesova, MarketWatch
NEW YORK (MarketWatch) — Oil futures rose above $86 a barrel on Thursday, aiming to break a five-session losing streak, as data showed a decline in weekly jobless claims and a jump in September durable-goods orders.
Oil for December delivery CLZ2 +0.56% gained 75 cents to $86.48 a barrel in electronic trading on Globex.
The contract fell 1.1% Wednesday, ending below $86 a barrel for the first time since July, after the Energy Information Administration reported a 5.9- million–barrel increase in crude supplies for the week ended Oct. 19.
Offering some support to oil prices on Thursday morning were U.S. economic data. Orders for durable goods surged 9.9% in September, exceeding expectations, and weekly jobless claims dropped by 23,000 to a seasonally adjusted 369,000.
The U.K. also received good economic news Thursday, with data showing that the British economy returned to growth in the third quarter.
Positive economic data tend to boost oil prices because the figures buoy hopes of stronger economic growth and an increase in demand for oil.
Another support factor for oil prices came from the currency markets, where the dollar index DXY -0.11% — which measures the greenback against a basket of other major currencies — dropped to 79.869 from 79.932 in North American trade late Wednesday. Read: Dollar off, sterling jumps as U.K. economy sees growth.
Dollar weakness boosts dollar-denominated commodities such as oil because it makes them cheaper for holders of other currencies.
Polya Lesova is MarketWatch's New York deputy bureau chief.
