* Four-week average of US jobless claims drops
* Euro zone economic sentiment hits 8-month high in July
* China central bank says to keep loose monetary policy
(Updates with revised settlement prices)
By Matthew Robinson
NEW YORK, July 30 (Reuters) - Oil jumped more than 5
percent to near $67 a barrel on Thursday as economic data
sparked fresh optimism that the recession may be bottoming
out.
The number of U.S. workers staying on jobless rolls fell to
the lowest in three months last week, government data showed,
while the four-week moving average for new claims dropped by
8,250, to 559,000 -- the lowest level since late January.
[]
Support also came from data showing euro zone economic
sentiment increased in July to its highest level in eight
months, helping to lift European equities to their highest
close in nearly nine months. []
The central bank of the world's No. 2 oil consumer, China,
said on Thursday it would keep a loose monetary policy to
consolidate its recovery after fears Beijing might move to
tighten money supply. That had sent Chinese shares spiraling on
Wednesday. []
"Markets are rebounding with stocks higher, renewed
optimism, and a weak dollar. Oil markets were oversold after
yesterday's sharp drop and jobless data may have also provided
additional support," said Tom Bentz, analyst at BNP Paribas
Commodity Futures Inc.
U.S. crude <CLc1> settled up $3.59, or 5.7 percent, at
$66.94 a barrel, nearly erasing a 5.8 percent loss posted on
Wednesday after U.S. data showed a steep build in the top
consumer's crude inventories. [] Earlier, the New York
Mercantile Exchange had reported U.S. crude had settled at
$66.92, before later revising the close higher.
London Brent <LCOc1> traded up $3.58 to $70.11 a barrel.
The economic data, along with a string of solid corporate
profits, helped lift equities markets while the dollar weakened
as optimism whetted investor appetite for risk. []
Expectations a rebound in the global economy could bolster
slumping fuel demand have helped push crude up from below $33 a
barrel in December, with many investors looking to stock
markets for early signs of a turnaround.
The recession has battered global fuel consumption and sent
crude tumbling from record highs near $150 a barrel struck in
July 2008, prompting the Organization of the Petroleum
Exporting Countries to agree a series of output cuts aimed at
lifting prices.
Kuwait's oil minister said oil prices should rise later
this year with the onset of winter heating oil demand in the
Northern Hemisphere. []
Energy traders have also been keeping a close eye on plans
under consideration by the U.S. Commodities Futures Trading
Commission to implement position limits for some commodity
futures after wide price swings that have raised concern over
speculation. To see a list of stories click on []
Some critics worry U.S. regulators may impose limits on
futures positions, which could push investors away from
exchange-based oil trading in contracts such as NYMEX crude.
(Additional reporting by Robert Gibbons and Gene Ramos in New
York and Christopher Johnson in London; Editing by Marguerita
Choy)
