NEW YORK, Nov 5 (Reuters) - U.S. crude oil futures ended
lower on Thursday, snapping a three-day rally, on worries about
weak oil demand as the economic outlook remained cautious
despite a decline in new claims for jobless benefits.
"Economic indicators continue to show an economy on the
mend, but we are not seeing any real signs of that in energy
demand," said Peter Beutel, president of Cameron Hanover in New
Canaan, Connecticut.
"There were still 500,000 new (jobless) claims and the
economy is still muddled. While the EIA data had crude supply
lower, product supplies weren't very much lower, even though
refinery use fell 1.2 percentage points," said Gene McGillian,
analyst at Tradition Energy in Stamford, Connecticut.
Oil traders brushed aside a rally on Wall Street, where
investors were encouraged after data showed an expansion in
business productivity and a fall in jobless claims. [.N]
The dollar edged up against major currencies, recovering
from recent losses as investors booked profits before a key
government jobs report expected to shed more light on the
health of the U.S. economy. [USD/]
The U.S. Labor Department reported that the number of
workers filing new claims for jobless insurance fell more than
expected last week to 512,000, a 10-month low, with continuing
claims dropping to the lowest since March. [ID:nN05106320]
U.S. non-farm productivity in the third quarter rose at its
fastest pace in six years, the government said.[ID:nN05106320]
Domestic crude oil inventories fell 4.0 million barrels
last week, Wednesday's data from the U.S. Energy Administration
showed, surprising oil traders. But U.S. total oil product
demand over the past four weeks was down 4.5 percent from a
year ago, the EIA said. [EIA/S]
PRICES
* On the New York Mercantile Exchange, December crude
CLZ9 settled down 78 cents, or 0.97 percent, at $79.62 a
barrel, trading from $79.34 to $80.52. It was an inside day,
with the day's high and low playing within the previous
session's range.
* In London, December Brent crude LCOZ9 ended down 90
cents, or 1.14 percent, at $77.99 a barrel, trading from $77.80
to $78.95.
* NYMEX December RBOB RBZ9 finished 2.50 cents lower, or
1.24 percent, at $1.9877 a gallon, trading from $1.9802 to
$2.0230.
* NYMEX December heating oil HOZ9 ended down 3.26 cents,
or 1.56 percent, at $2.0576 a gallon, trading from $2.0501 to
$2.0920.
* The December/December RBOB crack spread <0#RB-CL=R> ended
at $3.86, contracting from at $4.13 on Wednesday. The
December/December heating oil crack spread <0#CL-HO=R> ended at
$6.80, narrowing from $7.39 on Wednesday.
* The spread between the current front month and the
five-year forward crude contract CLc61 ended at $12.37,
narrowing from $12.52 on Wednesday. The December 2014 contract
settled on Thursday at $91.99, down 93 cents, or 1 percent.
TECHNICALS
NYMEX crude 10-day/20-day moving average: $79.16/$78.17
Technical support/resistance:
NYMEX crude: $78.16/$82.00
NYMEX heating oil: $1.9650/$2.1289
NYMEX RBOB: $1.9330/$2.0751
For a full report on technicals, click on [ID:nL5040502]
MARKET NEWS
* Hurricane Ida made landfall in Nicaragua's Caribbean
coast on Thursday. The storm was moving slowly and the National
Hurricane Center forecast it passing over Central America and
regaining strength by Monday off Mexico's Yucatan peninsula,
which could take it into the Gulf of Mexico. [ID:nN0599086]
* To see Ida's projected path, here's a graphics link:
here
* Major oil exporters in Latin America and the Middle East
have expressed "strong interest" in switching the basis of
their oil prices to Argus's U.S. Sour Crude Index following
Saudi Arabia's adoption of the index, an Argus executive said
on Thursday. [ID:5126374]
* Mexico's Coatzacoalcos oil terminal, closed due to bad
weather since Tuesday afternoon, reopened on Thursday morning,
while the nearby Dos Bocas oil port remained closed due to high
waves, the government said. [ID:nN05125301]
(Reporting by Gene Ramos and Robert Gibbons; Editing by David
Gregorio)
