U.S. crude oil rebounds more than 1% as recession fears ease

U.S. crude oil futures rose more than 1% on Thursday to close above $78 per barrel, rebounding from two days of losses as recession fears ease.

Strong retail sales for July and declining jobless claims gave investors renewed confidence in the U.S. economy, which had been shaken recently by weak labor and manufacturing data.

U.S. crude oil and Brent are up 1.7% this week as the situation in the Middle East remains precarious.

Here are Thursday’s closing energy prices:

• West Texas Intermediate September contract: $78.16 per barrel, up $1.18, or 1.53%. Year to date, U.S. crude oil has gained 9%.
• Brent October contract: $81.04 per barrel, up $1.28, or 1.6%. Year to date, the global benchmark is ahead 5.2%.
• RBOB Gasoline September contract: $2.35 per gallon, up more than 3 cents, or 1.59%. Year to date, gasoline is up 12.1%.
• Natural Gas September contract: $2.19 per thousand cubic feet, down 2 cents, or about 1%. Year to date, gas is down 12.6%.

The U.S. benchmark surged above $80 per barrel on Monday as Israel and OPEC member Iran appeared on the brink of direct conflict, with the Pentagon dispatching forces to the Middle East to defend its ally.

Prices subsequently pulled back as war fears eased, at least temporarily, with Iran apparently willing to abort an expected strike on Israel if Gaza cease-fire talks scheduled Thursday in Qatar are successful.

China has also weighed on the market this week, with OPEC lowering its forecast for the year on softening demand in the world’s second-largest economy. And U.S crude stockpiles rose for the week ended Aug. 9 as the summer driving season nears its end.