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Price of oil rises on US job statistics

Oil prices rose after the US Labour Department said the number of unemployment claims fell
Oil prices rose after the US Labour Department said the number of unemployment claims fell

The price of oil has risen to a high for the week after a positive reading on the US job market.

By midday in New York, benchmark oil for July delivery was up $1.36 to $95.10 a barrel.

Oil earlier rose as high as $95.32.

Oil prices received support from the latest government unemployment update.

The US Labour Department said that the number of Americans seeking unemployment benefits fell 11,000 last week to a seasonally adjusted 346,000, a level consistent with steady job growth.

The claims figures come a day ahead of the monthly payrolls report, which often sets the tone across financial markets for a week or two after its release.

Oil prices are still expected to stay within a tight range for now, as supplies are ample and demand remains restrained by a tepid global economic recovery.

"The market has been stuck in neutral for some time and it's hard to see how any analyst can be so bold as to see a major move on the chart forming in the near term," said Carl Larry of Oil Outlooks and Opinions in a market commentary.

Brent crude, a benchmark for many international oil varieties, was up 67 cents to $103.63 a barrel on the ICE Futures exchange in London.