Upbeat economic reports also provided support for energy bulls, as the U.S Labor Department data on Thursday showed that 198,000 applied for unemployment benefits during the week ended Dec. 25, leaving new jobless claims around a 52-year low amid the spread of omicron. Separately, the Chicago Business Barometer, also known as the Chicago PMI, rose to 63.1 in December up from 61.8 last month, with the report viewed as an early gauge of the Institute for Supply Management’s more closely followed report on manufacturing activity next Tuesday.
West Texas Intermediate crude for February delivery traded 43 cents, or 0.6%, higher to settle at $76.99 a barrel on the New York Mercantile Exchange, after the U.S. benchmark rose 0.8% on Wednesday. The contract has posted seven straight gains, marking the longest such advance since the eight-session period ended Feb. 10, according to Dow Jones Market Data. February Brent crude added 9 cents, or 0.1%, to finish at $79.32 a barrel on ICE Futures Europe, after rising 0.4% to the highest price since Nov. 25 for the global benchmark. Brent has climbed for four straight sessions. Both contracts had pared early, modest losses to pivot higher in the middle of the session.
U.S. Energy Information Administration data on Wednesday showed crude oil inventories fell by 3.6 million barrels in the week to Dec. 24. Gasoline and distillate inventories also declined, indicating demand remained strong despite record U.S. COVID-19 cases. Global oil prices have rebounded by between 50% and 60% in 2021 as fuel demand recovered to near pre-pandemic levels and output management by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) for most of the year erased a supply glut. OPEC+ will meet on Jan. 4 to decide whether to continue increasing output in February and the early speculation is that the organization will stand pat on its plan to raise overall monthly production by 400,000 per day starting in January.
