Oil prices retreated on Thursday as disappointing economic data offset a successful auction of Spanish bond.
Lackluster economic reports dampened oil market investors' optimism about recovery and energy demand rebound. The Federal Reserve Bank of Philadelphia said its index of manufacturing activity dropped to 8 from 21.4 the month before, the lowest pace in 10 months.
Moreover, the number of people filing new claims for unemployment benefits increased sharply after three weeks of decline. A weak labor market means that money-tight consumers may be forced to cut back on energy consumption.
The weak economic outlook pressured on the oil futures, which fell toward 76 U.S. dollars a barrel in New York trading. The dollar weakened against the euro, which was boosted after sales of the Spanish government bond went successfully, but failed to lift oil prices.
Light, sweet crude for July delivery fell 88 cents to settle at 76.79 dollars a barrel on the New York Mercantile Exchange.
Brent crude for August delivery rose 52 cents to 78.66 dollars a barrel on the ICE Futures Exchange in London.
Lackluster economic reports dampened oil market investors' optimism about recovery and energy demand rebound. The Federal Reserve Bank of Philadelphia said its index of manufacturing activity dropped to 8 from 21.4 the month before, the lowest pace in 10 months.
Moreover, the number of people filing new claims for unemployment benefits increased sharply after three weeks of decline. A weak labor market means that money-tight consumers may be forced to cut back on energy consumption.
The weak economic outlook pressured on the oil futures, which fell toward 76 U.S. dollars a barrel in New York trading. The dollar weakened against the euro, which was boosted after sales of the Spanish government bond went successfully, but failed to lift oil prices.
Light, sweet crude for July delivery fell 88 cents to settle at 76.79 dollars a barrel on the New York Mercantile Exchange.
Brent crude for August delivery rose 52 cents to 78.66 dollars a barrel on the ICE Futures Exchange in London.
