NYMEX March crude futures settled $1.13 higher at $98.84/b Thursday on an unexpected drop in US jobless claims and improved risk appetite on news that Greek leaders reached an austerity deal, analysts said.
March heating oil settled 1.9 cents higher at $3.2085/gal, and March RBOB settled 3.76 cents higher at $3.0128/gal.
ICE March Brent settled $1.39 higher at $118.59/b, widening the volatile Brent/WTI spread to $19.75/b, from a previous settle of $18.49/b.
A deal was reached Thursday among Greek political leaders on additional austerity measures demanded by EU-IMF creditors in return for a loan bailout, European Central Bank chief Mario Draghi said, according to an AFP report.
"Whatever the reality and ultimate outcome for Greece, this will be seen, for a time, as having the Greek problem solved," said Mike Fitzpatrick of Kilduff Group. "While the market reaction is positive, a classic buy the rumor, sell the news situation could ensue."
In the US, initial claims for unemployment benefits fell by 15,000 to 358,000 for the week ended February 4, according to the Department of Labor, outpacing market expectations.
Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas, said the widening Brent/WTI spread was being driven by rising Asian demand for Brent-related crudes and a "shortfall in North Sea output from the Buzzard field, which will reduce the number of cargoes available for February loading."
A total of nine North Sea Forties crude cargoes loading in February have been deferred following lower-than-expected production at the Buzzard field late last week and the previous week, traders said Wednesday. Two February cargoes were advanced earlier in the month.
Carl Larry, president of Oil Outlooks, said some "shuffling" in the oil market during the session came from funds dipping into "economic recovery positioning," but otherwise said it was mostly an "off-day" for fundamentals and real interest.
The euro posted gains and was up about 24 points by the NYMEX settle, adding to the upside in oil futures.
Analysts at Brown Brothers Harriman said a euro rally is expected into next week as shorts are further squeezed out of the market.
"However, while the short-covering rally may have a bit more gas left in its tank, gains might be limited as the eurozone bond supply begins to pick up," the analysts said. "Italy, Germany, France, Belgium and Portugal are all slated to issue debt next week."
At the same time, fourth quarter eurozone GDP out next week is expected to show the economy contracted by minus 0.4%, the analysts said.
