NEW YORK - World oil prices fell broadly on Thursday as the dollar strengthened and U.S. unemployment claims rose, but January U.S. crude futures held firm as cold weather gripped the U.S. northeast and a Canadian crude unit cut production after a fire.
While the dollar's rise to a more than three-month high versus the euro dragged down most oil prices, January U.S. crude recouped early losses to end nearly unchanged.
U.S. crude prices were supported by an outage at a Suncor Energy (SU.TO) Canadian oil-sands upgrading facility, which may help ease high crude inventories in the North American midcontinent.
"This (outage) should help the crude market in the Cushing area (where U.S. oil futures are delivered)," said Carl Holland of Energy Trading Solutions LLC in Connecticut.
U.S. crude for January delivery, which expires on Monday, settled down 1 cent at $72.65 a barrel, after falling to near $71. U.S. oil futures for delivery in later months fell more sharply.
ICE Brent futures for February delivery shed 92 cents a barrel to settle at $73.37.
U.S. crude for near-term delivery was also supported by prospects for a cold spell that would increase heating fuel demand in the U.S. Northeast.
A 10-day National Weather Service forecast this week called for unseasonably cold weather in most of the eastern United States, the world's biggest regional consumer of heating oil.
Colder weather helped offset oil traders' concern that rising jobless claims could undermine a U.S. economic rebound. The number of U.S. workers filing new applications for jobless insurance unexpectedly rose last week.
U.S. stock markets .N fell as investors sought safer havens, and the dollar
"The dollar strength is going to be a significant enough headwind these days to pressure prices," said John Kilduff, partner at Round Earth Capital in New York.
FUNDAMENTALS TO THE FORE
While economic data and the direction of the U.S. dollar have often dictated oil's direction this year, fundamentals are reasserting themselves, after government data showed that last week's decline in U.S. crude oil stocks was double expectations.
"Some of the selling pressure has eased," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.
Distillate stocks, which include diesel and heating oil, fell by 2.9 million barrels last week, far exceeding forecasts for a 600,000-barrel drop. Analysts said they may fall further due to a U.S. cold spell.
On the supply front, the Organization of the Petroleum Exporting Countries (OPEC), which pumps about a third of the world's oil, is widely expected to keep output unchanged when it meets in Angola to discuss production policy on December 22.
Suncor Energy Inc (SU.TO) said Thursday it would cut output at one of its oil sands upgraders, in Canada's Alberta Province, by up to 150,000 barrels a day, or half of its capacity, for two to four weeks after a fire at the plant on Tuesday.
The outage had a limited effect on world oil prices, but helped to strengthen near-term U.S. crude prices, since it could mean some of the crude that is now accumulating at a quick pace in the U.S. Midwest will be drawn down, traders said.
While the dollar's rise to a more than three-month high versus the euro dragged down most oil prices, January U.S. crude recouped early losses to end nearly unchanged.
U.S. crude prices were supported by an outage at a Suncor Energy (SU.TO) Canadian oil-sands upgrading facility, which may help ease high crude inventories in the North American midcontinent.
"This (outage) should help the crude market in the Cushing area (where U.S. oil futures are delivered)," said Carl Holland of Energy Trading Solutions LLC in Connecticut.
U.S. crude for January delivery, which expires on Monday, settled down 1 cent at $72.65 a barrel, after falling to near $71. U.S. oil futures for delivery in later months fell more sharply.
ICE Brent futures for February delivery shed 92 cents a barrel to settle at $73.37.
U.S. crude for near-term delivery was also supported by prospects for a cold spell that would increase heating fuel demand in the U.S. Northeast.
A 10-day National Weather Service forecast this week called for unseasonably cold weather in most of the eastern United States, the world's biggest regional consumer of heating oil.
Colder weather helped offset oil traders' concern that rising jobless claims could undermine a U.S. economic rebound. The number of U.S. workers filing new applications for jobless insurance unexpectedly rose last week.
U.S. stock markets .N fell as investors sought safer havens, and the dollar
"The dollar strength is going to be a significant enough headwind these days to pressure prices," said John Kilduff, partner at Round Earth Capital in New York.
FUNDAMENTALS TO THE FORE
While economic data and the direction of the U.S. dollar have often dictated oil's direction this year, fundamentals are reasserting themselves, after government data showed that last week's decline in U.S. crude oil stocks was double expectations.
"Some of the selling pressure has eased," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.
Distillate stocks, which include diesel and heating oil, fell by 2.9 million barrels last week, far exceeding forecasts for a 600,000-barrel drop.
On the supply front, the Organization of the Petroleum Exporting Countries (OPEC), which pumps about a third of the world's oil, is widely expected to keep output unchanged when it meets in Angola to discuss production policy on December 22.
Suncor Energy Inc (SU.TO) said Thursday it would cut output at one of its oil sands upgraders, in Canada's Alberta Province, by up to 150,000 barrels a day, or half of its capacity, for two to four weeks after a fire at the plant on Tuesday.
The outage had a limited effect on world oil prices, but helped to strengthen near-term U.S. crude prices, since it could mean some of the crude that is now accumulating at a quick pace in the U.S. Midwest will be drawn down, traders said.
