Crude Oil Plummets 2%, Ends Below $96 A Barrel

(RTTNews) - U.S. crude oil plunged to end sharply lower Thursday, on demand growth concerns after some weak economic data from the U.S. with first-time claims for unemployment benefits rising more than expected last week, and as well on the unexpected increase in oil stockpiles last week.

An official crude inventories data from the Energy Information Administration on Wednesday showed crude stockpiles in the U.S. to have increased more than expected last week.

Elsewhere, eurozone recovery unexpectedly stagnated in the second quarter with Germany and Italy shrinking from the prior quarter.

The EIA, in its monthly short-term energy outlook, lowered its global oil consumption forecast for 2014 and 2015. Meanwhile, Libya is reportedly planning to resume oil exports from its largest port Es Sider next week. Earlier this week, the first shipment of oil from Libya left the Ras Lanuf port for the first time in almost a year.

Oil prices took a further hit on the back of some lackluster U.S. retail sales figures, coupled with disappointing economic data from Europe and China, renewing concerns of a drop in demand.

Light Sweet Crude Oil futures for September delivery, the most actively traded contract, plummeted $2.01 or 2.1 percent to close at $95.98 a barrel on the New York Mercantile Exchange Thursday.

Crude prices for September delivery scaled a high of $97.59 a barrel intraday and a low of $95.28.

On Wednesday, crude oil futures ended higher despite demand growth concerns after the U.S. Energy Information Administration's weekly oil report showed stockpiles to have increased unexpectedly.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.60 on Thursday, down from its previous close of 81.61 late Wednesday in North American trade. The dollar scaled a high of 81.69 intraday and a low of 81.41.

The euro traded higher against the dollar at $1.3368 on Thursday, as compared to its previous close of $1.3365 late Wednesday in North American trade. The euro scaled a high of $1.3407 intraday and a low of $1.3350.

In economic news from the U.S., initial jobless claims rose more than expected to 311,000, up 21,000 from the previous week's revised level of 290,000. Economists expected jobless claims to edge up to 295,000 from the 289,000 originally reported for the previous week.

Another report from the Labor Department showed import prices to have edged down 0.2 percent in July, after inching up by 0.1 percent in June. Forecast was for a drop of 0.3 percent in import prices. Export prices were unexpectedly unchanged in July following a 0.4 percent drop in the previous month.

Meanwhile, economic recovery in the eurozone unexpectedly came to a halt in the second quarter, with Germany and Italy shrinking from the prior quarter. GDP was flat in the June quarter, after seeing an increase of 0.2 percent in the preceding quarter.

The pace of Chinese growth continue to be of concern, with both China's latest industrial production and retail sales figures were less robust than the month before.