Crude oil prices are higher Thursday morning, lifted by short-covering after plunging to 5-1/2 year lows amid mounting worries about oversupply and demand growth concerns.
A modest decline in U.S. crude inventories last week is also supporting oil a bit.
Crude oil futures for January are up $1.18 or 2.09 percent at $57.65 a barrel.
On Wednesday, crude oil futures ended up $0.54 or 1.0 percent at $56.47 a barrel, after scaling a high of $58.98 intraday, after data from Energy Information Administration showed U.S. crude stockpiles to have dropped in the week ended December 12, although by much less than expected 0.85 million barrels.
Traders were also reacting to the U.S. Federal Reserve’s monetary policy statement. The Fed said it would be patient with regard to interest rate hikes, indicating that it will take its time before withdrawing any further support for the recovering economy.
Meanwhile, natural gas for January is up $0.040 or 0.97 percent at $3.740 per million btu.
The U.S. Labor Department’s jobless claims report for the week ended December 13th, at 8:30 am ET. The consensus estimate calls for an increase in claims to 295,000 from 294,000 in the previous week.
Markit is scheduled to release flash estimate of its service sector reading for December at 9:45 am ET. At 10 am ET, the Philadelphia Federal Reserve will release the results of its manufacturing purchasing managers’ index for the region. Around the same time, the Conference Board is scheduled to release its leading economic indicators index for November.
The material has been provided by InstaForex Company – www.instaforex.com