Crude oil futures extended the rally rising to 16 month high above USD 108 a barrel in the Asia electronic session today buoyed by strong data from US and the fall in inventories. Light, sweet crude for August delivery are trading up 10 cents at USD 108.12 per barrel on the New York Mercantile Exchange. Yesterday, it settled USD 1.56, or 1.5 percent, higher at USD 108.04 a barrel. That's its highest finish since March 19, 2012. The clearest sign of the development has been a steep drop in U.S. oil inventories, down 27 million barrels in the last three weeks, after setting records earlier this year.
On Thursday, analysts said the contract took cues from economic headlines pointing to stronger growth in the U.S., the world's largest oil consumer. The market was also lifted by a rising U.S. stock market, seen as a barometer of broader economic health.
The Labor Department said initial claims for unemployment benefits in the U.S. fell by 24,000 to a seasonally adjusted 334,000 in the week ended July 13. Economists had expected 340,000 new jobless claims. Separately, the Philadelphia Fed’s manufacturing survey in July surged to 19.8 from 12.5 in June, marking the highest level since March 2011
