Oil Futures Mixed, Initial Jobless Claims Rose


   
Maria Eugenia Garcia
DTN Energy Editor

   HOUSTON, TX (DTN) -- Oil futures were mixed Thursday morning amid declining 
U.S. crude inventories and a higher-than-expected initial jobless claims data.

   In the previous trading session front-month crude oil futures rocketed on 
limited U.S. crude supplies and on new sanctions on Russian oil trade, leading 
to a steepening backwardation. The NYMEX WTI futures contract's six-month 
calendar spread shot up to a two-year high.

   A larger-than-expected draw to commercial crude oil inventories led them to 
a three-year seasonal low, supporting prices. Strong export demand continued to 
pull barrels from inventories. The bullish effect was tempered by large builds 
of gasoline and middle distillates stocks.

   However, the bullish sentiment shifted as higher-than-expected initial 
unemployment claims in January reversed gains seen in the previous trading 
session, with the exception of the ULSD futures contract for February, March, 
and April deliveries.

   The Department of Labor reported that the advance figure for seasonally 
adjusted initial claims was 217,000, an increase of 14,000 from the 203,000 
revised level from the previous week. The figure, however, was above the market 
expectation of 201,000.

   But in the near term, despite Israel and Hamas have reached a ceasefire deal 
to halt a 15-month war, firm global oil demand and supply tightness resulting 
from stricter sanctions on Russia  are expected to give support to higher oil 
prices.

   The International Energy Agency estimates that the global oil demand growth 
forecast for 2025 will remain steady at 1.4 million bpd. "This robust oil 
demand growth is expected to continue in 2026," the IEA said.

   The front-month NYMEX WTI futures contract fell by $0.16 to $79.88 bbl, 
while March ICE Brent futures contract dropped by $0.09 to $81.94 bbl.

   The February RBOB futures contract edged down by $0.0197 to 2.1392 gallon. 
The front-month ULSD futures contract climbed by $0.0246 to $2.6381 gallon.

   The U.S. dollar index rose by 0.17% to 109.09 against a basket of foreign 
currencies.




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