Brent crude futures settled up $1.28, or 1.6%, at $81.04 a barrel and U.S. West Texas Intermediate crude futures rose by $1.18, or 1.53%, to $78.16
Oil prices gained more than $1 a barrel on Thursday after U.S. economic data reduced fears of recession in the country’s economy, although the rally was limited by concerns of slower global demand.
Brent crude futures settled up $1.28, or 1.6%, at $81.04 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose by $1.18, or 1.53%, to $78.16.
Data showed U.S. retail sales rose more than expected in July. Another report showed a smaller-than-expected increase in the number of Americans filing for unemployment benefits.
The positive economic data serve as an indicator that we are heading towards a soft landing, according to Bob Yawger, director of energy futures at Mizuho in New York.
Data from the Labor Department on Wednesday showed U.S. consumer prices increased moderately in July. This reinforced expectations the Fed will reduce interest rates next month, which could boost economic activity and oil consumption.
Geopolitics and the risk of a widening conflict in the Middle East are propping up prices, as the threats of retaliation continue to grow louder, said Tim Snyder, chief economist at Matador Economics.
Both main oil benchmarks had dropped more than 1% on Wednesday after U.S. crude inventories rose unexpectedly.
U.S. crude oil stockpiles rose by 1.4 million barrels in the week ended August 9, compared with estimates for a 2.2 million barrel draw, building for the first time since late June.
China’s factory output growth slowed in July, while refinery output dropped for a fourth month, underscoring the country’s spotty economic recovery and limiting the upside for crude markets on Thursday.
