Crude oil posts slight rally after positive economic data

Oil prices rallied slightly in Asian trading on Thursday as traders priced in economic data that showed that the employment situation was improving in Australia and New Zealand. At the same time, investors eagerly awaited the European Central Bank’s interest rate decision.

On the New York Mercantile Exchange, oil futures for March delivery were up just 0.14% at
USD96.75 per barrel in Asian trading, up from a session low of USD96.70 and down from a high of USD96.89 per barrel.

Oil futures were likely to test support at USD95.14 per barrel, the low from yesterday, and resistance at USD97.90, a high from February first.

Crude oil, as the primary energy source for the world’s developed economies, is sensitive to economic indicators, particularly those that suggest jobs growth. With more people employed, the demand for energy would tend to increase.

Earlier on Thursday, jobs data released in both Australia and New Zealand showed that the employment was growing in both nations. Australia's unemployment rate was unchanged at 5.4% (economists had forecast an increase in the rate to 5.5%) while New Zealand’s unemployment rate decline to 6.9% from 7.3%.

At the same, in Japan, data showed that core machinery orders had increased 2.8% in the last month; economists expected the figure to show a decline of 0.70%. If machinery orders are increasing, demand for oil Japan may likewise increase.

Of course, investors will get their largest economic indicator of the day later on Thursday, when the ECB releases its interest rate decision. Economists expect the bank to leave the interest rate unchanged at 0.75% -- an unexpected increase or decrease could send shock waves through the oil market.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for January delivery fell 0.13% to trade at USD116.76 a barrel, with the spread between the Brent and crude contracts standing at USD20.01 a barrel.- INVESTING.COM