Oil prices below $98 as traders wait for U.S. indicators

PanARMENIAN.Net - Oil prices hovered below $98 a barrel Thursday, Jan 31, consolidating recent gains as traders waited for more economic indicators from the U.S., The Associated Press reports.

Benchmark oil for March delivery was down 4 cents to $97.90 at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose 37 cents to finish at $97.94 per barrel on the New York Mercantile Exchange on Wednesday.

The U.S. economy unexpectedly contracted in the fourth quarter, which turned stock markets lower after a January rally that pushed the Dow Jones industrial average to near-record highs.

Meanwhile, increasing imports pushed U.S. crude oil supplies up by 5.9 million barrels last week, more than twice what analysts expected, the government said Wednesday.

Ample supplies have been a major factor in keeping oil prices from spiking, although prices have risen $6 per barrel since the start of the year. Still, oil hasn't seen the $100-per-barrel level since early May.

Weekly jobless claims will be released later in the day in Washington. Traders were also awaiting the release Friday of employment data and manufacturing for January, hoping to see signs of an improving U.S. economy.

Brent crude, used to price international varieties of oil, rose 10 cents to $115 a barrel on the ICE Futures exchange in London.