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Oil Bounces with Help of Record Low US Jobless Claims

January 29, 2015 at 22:24 by Vladimir Vyun

Crude oil gained today as positive macroeconomic data from the United States led to hopes that demand for fuel will rise. US initial jobless claims dropped from 308,000 to 265,000 last week, far below the level that was predicted by analysts. The reading was the lowest in almost 15 years.

Previously, futures for crude declined, and prices for the West Texas Intermediate grade fell below the $44 per barrel level. The drop resulted from concerns about oversupply on the market. With the record US inventories and refusal of the OPEC members to cut production, it is likely that the oil market will experience a huge glut. As a result, crude oil remains in a downtrend in both the long and the short term.

March futures for WTI crude oil ticked up 0.09 percent to $44.49 per barrel as of 22:19 GMT on NYMEX today. Brent crude demonstrated much bigger gain, jumping 1.20 percent to $49.05 per barrel on ICE.

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