World Oil Prices Rebound from Sharp Losses
World oil prices rebounded gently on Friday, one day after slumping in the face of weak Chinese data and international concern that elevated crude costs could hurt the global recovery, traders said.
Brent North Sea crude for delivery in May gained 77 cents to $123.91 a barrel in London midday deals.
New York's main contract, West Texas Intermediate crude for May, rose 39 cents to $105.74 a barrel.
The market had fallen sharply on Thursday following weak Chinese manufacturing figures and also after France said industrialized countries were considering the release of crude stockpiles.
"Oil prices have recovered slightly from yesterday's losses," said Commerzbank analyst Carsten Fritsch.
"The price of oil has profited from statements by the International Energy Agency, which currently sees no reason to release strategic oil reserves.
"What is more, the United States is exerting pressure on China and India to significantly reduce their oil imports from Iran."
Crude futures also won support from data showing an improvement in U.S. employment numbers and lingering concerns over geopolitical tension in the Middle East.
"Oil has gone higher, supported by economic optimism in the United States and also concern about supply from Iran," added Ken Hasegawa, energy desk manager at Newedge brokerage in Japan.
US government data released on Thursday showed that claims for unemployment benefits fell to a fresh four-year low last week, pointing towards a recovery in the country's depressed labor market.
The US Labor Department said 348,000 initial jobless claims were filed in the week ending March 17, down from a revised 353,000 in the previous week.
Meanwhile, the standoff between the West and crude producer Iran continues to be a key factor affecting oil prices.
The Islamic republic has threatened to shut the strategic Strait of Hormuz -- a conduit for a fifth of the world's oil supply -- if it faces additional economic sanctions from the West for its controversial nuclear program.
Much of the international community believes that Iran's nuclear programme is geared towards obtaining an atomic weapon but Tehran denies the charges, saying it is for civil power generation and medical purposes only.
The oil market was weighed down this week by a fresh sign of cooling growth in China, which is the world's second-largest economy and second-biggest oil consumer.
Chinese manufacturing activity fell to a four-month low in March, HSBC bank said on Thursday, adding fuel to concerns over slowing growth in the world's second largest economy.
"Oil price falls have been sparked by a rise in Chinese domestic petrol and diesel prices, and a drop in Chinese manufacturing," said analyst Tom Pering at British-based energy consultancy Inenco.
"Those falls have also been driven by rising supplies from Libya and Saudi Arabia and promises of increased flows, if need be."