Investing.com - Crude oil futures rocketed higher Thursday, as unsubstantiated news of a Saudi pipeline explosion fueled supply worries and U.S. data showing initial jobless claims held steady, eased concerns over the U.S. economic outlook.
On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at USD110.00 a barrel during early U.S. morning trade, adding 2.65%.
Unsubstantiated word of a Saudi pipeline explosion triggered the surge higher late in the session
In economic news, the U.S. Department of Labor said earlier that initial claims for state unemployment benefits fell by 2,000 to 351,000 last week. The previous week's figure was revised up to 353,000 from the previously reported 351,000.
Jobless claims have remained below 400,000, a level historically associated with an improving labor market, in 16 of the past 18 weeks.
Separate reports showed that the U.S. personal spending rose 0.2% in January, below expectations for a 0.4% gain, while Personal income rose by 0.3% last month, missing expectations for a 0.6% gain.
The data came one day after Federal Reserve Chairman Ben Bernanke dampened expectations for a third round of monetary easing in testimony before Congress, after he acknowledged the recent improvement in the labor market and said that higher oil prices could push up inflation.
The U.S. is the world’s largest oil consumer, accounting for nearly 21% of global demand.
Increasing bullish sentiment, oil traders continued to monitor developments surrounding a potential disruption to Iranian oil supplies. Growing tensions between Iran and Israel also remain in focus.
U.S. Air Force Chief of Staff General Norton Schwartz said Wednesday that Washington has prepared military options to strike Iran's nuclear sites should conflict erupt, fueling conflict supply worries.
Israel and the U.S. have previously stated that all options are on the table in ensuring the Islamic Republic does not acquire atomic weapons.
Barclays reported Wednesday that NYMEX-traded oil prices could average USD135 a barrel in 2012 if international relations with Iran deteriorate, compared with a current forecast of USD115.
“We still contend that the risk of either an Israeli or a U.S. strike on the Iranian nuclear facilities is low, but it has risen, in our view, from 5%-10% last year to 25%-30% now,” the bank said in a report.
Iran produces about 3.5 million barrels of oil a day, making it the second largest oil producer in the Organization of Petroleum Exporting Countries, after Saudi Arabia.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for April delivery rose 0.76% to trade at USD123.59 a barrel, with the spread between the Brent and crude contracts standing at USD15.87.
Barclays said Brent oil could rise to USD150 a barrel, even if there is no military conflict or closure of the Strait of Hormuz.
On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at USD110.00 a barrel during early U.S. morning trade, adding 2.65%.
Unsubstantiated word of a Saudi pipeline explosion triggered the surge higher late in the session
In economic news, the U.S. Department of Labor said earlier that initial claims for state unemployment benefits fell by 2,000 to 351,000 last week. The previous week's figure was revised up to 353,000 from the previously reported 351,000.
Jobless claims have remained below 400,000, a level historically associated with an improving labor market, in 16 of the past 18 weeks.
Separate reports showed that the U.S. personal spending rose 0.2% in January, below expectations for a 0.4% gain, while Personal income rose by 0.3% last month, missing expectations for a 0.6% gain.
The data came one day after Federal Reserve Chairman Ben Bernanke dampened expectations for a third round of monetary easing in testimony before Congress, after he acknowledged the recent improvement in the labor market and said that higher oil prices could push up inflation.
The U.S. is the world’s largest oil consumer, accounting for nearly 21% of global demand.
Increasing bullish sentiment, oil traders continued to monitor developments surrounding a potential disruption to Iranian oil supplies. Growing tensions between Iran and Israel also remain in focus.
U.S. Air Force Chief of Staff General Norton Schwartz said Wednesday that Washington has prepared military options to strike Iran's nuclear sites should conflict erupt, fueling conflict supply worries.
Israel and the U.S. have previously stated that all options are on the table in ensuring the Islamic Republic does not acquire atomic weapons.
Barclays reported Wednesday that NYMEX-traded oil prices could average USD135 a barrel in 2012 if international relations with Iran deteriorate, compared with a current forecast of USD115.
“We still contend that the risk of either an Israeli or a U.S. strike on the Iranian nuclear facilities is low, but it has risen, in our view, from 5%-10% last year to 25%-30% now,” the bank said in a report.
Iran produces about 3.5 million barrels of oil a day, making it the second largest oil producer in the Organization of Petroleum Exporting Countries, after Saudi Arabia.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for April delivery rose 0.76% to trade at USD123.59 a barrel, with the spread between the Brent and crude contracts standing at USD15.87.
Barclays said Brent oil could rise to USD150 a barrel, even if there is no military conflict or closure of the Strait of Hormuz.