Oil prices in the international market rose to $73 on Thursday, due to the decline in the number of US jobless claims, which was interpreted as a clear sign of the economy’s recovery from the new crown crisis.
In the London market, the price of a barrel of oil rose 55 cents from the previous closing price to $72.77. The trading price per barrel in the US market rose by 51 cents to $70.47.
The US labor market report showed that the number of new jobless claims fell to the lowest level since the beginning of the coronavirus pandemic last week, which encouraged traders.
Louise Dickson of Rystad Energy concluded: “The new data on unemployment and labor market released by the United States is a clear and reliable sign that the recovery is accelerating.”
“The increase in economic activity also means higher energy consumption, and better economic conditions are a prerequisite for the growth of road and air traffic,” Dixon added.
The May inflation data also had a positive impact on the market, indicating that domestic demand has continued to recover from the impact of the coronavirus measures. Prices are up 0.6% from the 0.8% increase in April.
Inflation and labor market reports dispelled concerns about weak fuel demand in the United States at the beginning of the summer driving season, with data showing gasoline inventories increased by 7 million barrels last week.
According to official government data, the implied demand fell from 9.15 million barrels per day in the previous week to 8.48 million barrels per day.
On the other side of the world, India’s fuel demand fell to its lowest level since August last year due to the second wave of covid-19 and measures to prevent liquidity and curb economic activity in the world’s third-largest oil consumer.
The Organization of the Petroleum Exporting Countries (OPEC) announced on its website this morning that the price per barrel of its members’ reference basket was $71.19 on Wednesday, an increase of $1.38 from the previous trading day.