World oil prices fell sharply this evening in response to a batch of poor economic data which sparked fresh questions about the fragile economic recovery in top energy consuming nation the United States. US crude lost 97 cents to $74.45 a barrel, while Brent crude plunged $1.02 to $75.45.
The US government revealed today that the number of Americans filing new weekly claims for jobless benefits jumped unexpectedly to 500,000, the highest level in nine months, threatening recovery hopes.
Market sentiment was already dampened on Wednesday by news of a lower than expected fall in US crude reserves.
US crude reserves fell 800,000 barrels in the week ending August 13, less than forecast, official figures showed on Wednesday. Petrol inventories were flat, while analysts had predicted a drop of 500,000 barrels. A fall in stockpiles is seen as an indicator of stronger demand.
