Oil Rises as U.S. Jobless Claims in U.S. Fall

Oil advanced after the fewest number of Americans in four years filed first-time applications for unemployment benefits and on concern that tension between Syria and Turkey will disrupt shipments from the Middle East.

Futures rose as much as 1.9 percent as Labor Department figures showed that claims for jobless benefits fell to 339,000 last week, the lowest level since February 2008. Turkey seized cargo on a Syrian passenger plane forced to land yesterday. The Energy Department will report today that U.S. oil supplies gained 1.5 million barrels last week, a Bloomberg survey showed.

“The jobless numbers gave the market another push higher,” said Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut. “The forced landing of the Syrian plane by Turkey opens a new front in the tensions between the countries, which is supportive for the market.”

Crude oil for November delivery rose $1.57, or 1.7 percent, to $92.82 a barrel at 10:47 a.m. on the New York Mercantile Exchange. Prices are up 8.2 percent from this time last year.

Brent oil for November settlement climbed $1.44, or 1.3 percent, to $115.77 a barrel on the London-based ICE Futures Europe exchange. The European benchmark touched a $23.51-a- barrel premium to West Texas Intermediate oil traded in New York, the highest intraday level since Oct. 21, 2011, according to Bloomberg calculations of exchange data.

http://www.bloomberg.com/news/2012-10-11/oil-rises-as-u-s-jobless-claims-in-u-s-fall.html