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Crude Prices Barely Budge Despite Encouraging Economic News

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Crude oil prices finished nominally lower amid choppy trading as some traders collected profits on yesterday's rally, while others saw encouraging economic news as a good sign for energy demand.

Light sweet crude oil finished at $72.47 per barrel, down 4 cents on the session. Prices hit as high as $73.16 and later as low as $70.40.

In economic news, the U.S. Labor Department revealed that initial jobless claims fell to 545,000 for the week ended September 12, down 12,000 from the previous week's revised total. Economists had expected claims to rise to about 575,000.

Meanwhile, a Commerce Department showed that housing starts rose 1.5 percent to an annual rate of 598,000 in August from the revised July estimate of 589,000. Later, the Philly Fed said its index of manufacturing activity rose to 14.1 in September from 4.2 in August, with a positive reading indicating growth in the sector.

Oil rallied $1.58 on Wednesday on strong inventory data. The Energy Information Administration reported crude oil supplies decreased by 4.7 million barrels to 332.8 million barrels in the week ended September 11. Gasoline inventories increased by 500,000 barrels last week.

The dollar bounced back after again extending its lowest level in nearly a year against the euro. The greenback moved modestly higher against the pound.

(Market News Provided by RTTNews)

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